In addition to the MF Lite framework, SEBI announced six key changes to the derivatives trading framework to curb excessive speculation and protect retail traders.

Among these changes, SEBI will raise margin requirements and mandate upfront collection of option premiums from buyers to reduce intraday leverage.

The minimum contract size for index derivatives will increase from Rs 5 lakh to Rs 15 lakh for new contracts starting November 20, 2024.

The Securities and Exchange Board of India (SEBI) convened a board meeting on September 30, 2024, amid serious allegations against Chairperson Madhabi Puri Buch.

Hindenburg Research has claimed that SEBI altered rules to favor Blackstone, where Buch's husband serves as a senior advisor, raising concerns about potential conflicts of interest.

The Congress party has also accused Buch of misusing unpublished price-sensitive information for trading during her tenure at SEBI.

During the meeting, Buch hinted at upcoming 'MF Lite' regulations aimed at easing compliance for mutual funds that focus on passive investment strategies.

The newly approved MF Lite framework will simplify entry for new players in the passive mutual fund market by reducing compliance requirements related to net worth and profitability.

These changes are set to take effect on February 1, 2025, and are part of SEBI's broader effort to enhance the investment landscape in India.

SEBI will also implement intraday monitoring of position limits for equity index derivatives to prevent market manipulation, with this measure set for rollout in April 2025.

Furthermore, the board may reintroduce 'summary proceedings' for straightforward violations to expedite enforcement actions against intermediaries.

Proposals to simplify certification requirements for research analysts and investment advisors are also on the agenda, aiming to lower barriers to entry in the financial services sector.