Ease of doing business (EODB) -Policy for joint annual inspection by MIIs –information sharing mechanism–action by Lead MII

SEBI, through Circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/113 dated August 7, 2025, has introduced a new policy for joint annual inspections of stock brokers and depository participants by Market Infrastructure Institutions (MIIs), effective from December 1, 2025, replacing the earlier system of separate inspections. This move aims to improve supervision, reduce duplication, and enhance ease of doing business. The circular mandates joint inspections for entities selected based on specific high-risk criteria (such as repeated penalties, high investor complaints, or high-risk scores), establishes an inter-MII information sharing mechanism, and introduces a Lead MII system to coordinate enforcement actions. It also exempts certain inactive or recently inspected entities and provides for special inspections based on specific triggers. MIIs must formulate a joint SOP by November 1, 2025.

Link: https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/aug-2025/1754563582805.pdf#page=1&zoom=page-width,-15,756