Latest from the Regulator - March 2025

1. SEBI Extends Cybersecurity Compliance Deadline for Regulated Entities by Three Months
In response to industry requests for additional time, the compliance deadline for the Cybersecurity and Cyber Resilience Framework (CSCRF) has been extended by three months, until June 30, 2025, for all SEBI-regulated entities (Res), except Market Infrastructure Institutions (MIIs), KYC Registration Agencies (KRAs), and Qualified Registrars to an Issue and Share Transfer Agents (QRTAs). The extension aims to facilitate a smoother transition towards enhanced cyber resilience while maintaining regulatory compliance across financial institutions. Stock exchanges and depositories have been directed to circulate the directive among stakeholders to ensure widespread awareness and adherence. Issued under Section 11(1) of the SEBI Act, 1992, the circular underscores the regulator’s commitment to strengthening financial infrastructure security, mitigating systemic cyber risks, and safeguarding investor interests.
2. SEBI Mandates Advertiser Verification for Registered Intermediaries on Social Media
Amid rising securities market frauds on Social Media Platforms (SMPs) such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), and Telegram, SEBI has introduced a new regulatory framework to enhance transparency, investor protection, and market integrity. SEBI registered intermediaries seeking to publish advertisements on platforms like Google and Meta must now undergo advertiser verification by registering with their SEBI SI Portal-linked email Ids and mobile numbers. This initiative, implemented in consultation with Social Media Platform Providers (SMPPs), aims to curb misleading financial promotions, deceptive trading courses, and fraudulent schemes promising risk-free or guaranteed returns. Market participants have been advised to update their contact details on the SEBI SI Portal by April 30, 2025, ensuring compliance with the new digital advertising due diligence norms. This measure strengthens regulatory oversight, enhances investor confidence, and mitigates the risk of financial misinformation in the rapidly evolving digital ecosystem.
3. SEBI Board Greenlights Major Regulatory Overhaul to Enhance Market Integrity
The 209th SEBI Board Meeting held on March 24, 2025 concluded with a series of transformative decisions aimed at bolstering market transparency, governance frameworks, and investor protection. Key approvals included:
- Strengthening Market Infrastructure Governance: SEBI revised the Public Interest Directors (PIDs) appointment process in Market Infrastructure Institutions (MIIs), eliminated mandatory cooling off periods for PIDs, and mandated Governing Board approval for hiring key executives such as Chief Risk Officers (CRiOs) and Chief Technology- Officers (CTOs), reinforcing governance in critical market functions.
- Constitution of High-Level Committee (HLC) on Conflict of Interest & Disclosures: A panel of industry stalwarts, legal experts, and regulatory veterans will reassess conflict of interest protocols, financial disclosures, and governance mechanisms for SEBI Members and Officials, reinforcing fiduciary responsibility and ethical conduct. The HLC will submit its recommendations within three months for board level deliberation and implementation.
These sweeping regulatory refinements reaffirm SEBI's commitment to robust financial oversight, risk mitigation, and capital market efficiency, positioning Indian markets for sustained institutional resilience and investor confidence.
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Institute of Directors India
Bringing a Silent Revolution through the Boardroom
Institute of Directors (IOD) is an apex national association of Corporate Directors under the India's 'Societies Registration Act XXI of 1860'. Currently it is associated with over 30,000 senior executives from Govt, PSU and Private organizations of India and abroad.
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