Market Medley

  The Securities and Exchange Board of India (“SEBI”) had at its Board meeting held on 12 September 2025, approved certain changes, inter-alia to the Related Party Transactions (“RPTs”) framework under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”). These changes have now been notified on 19 November 2025 vide the SEBI LODR (Fifth Amendment) Regulations, 2025.

  The Securities and Exchange Board of India (‘SEBI’), in a recent informal guidance, clarified that revocation of pledge and subsequent sale of ESOP shares (viz. shares acquired under Employee Stock Option Plan (‘ESOP’)) by a Designated Person constitute ‘trading’ under the SEBI Prohibition of Insider Trading (PIT) Regulations. However, such transaction does not attract ‘contra’ trade restrictions if they are bona fide and pre-cleared by the Compliance Officer.

  The RBI has undertaken a comprehensive review of the ECB regulations with the objective of rationalising and simplifying the regulatory regime governing borrowings from outside India. The RBI had recently, released the draft amendments to the ECB regulations which represents a significant move towards modernising and streamlining India’s ECB regime.

  Here’s a simple breakdown of the key developments in India's economy for the week ending September 26, 2025.

  India's financial markets stand at a critical juncture, caught between domestic policy reforms and a swirling vortex of global macroeconomic uncertainties. For investors, both in fixed income and equities, the landscape is one of nuanced opportunity tempered with significant risks. The interplay of monetary policy, fiscal health, and external trade dynamics will be the defining forces shaping market performance in the coming months.

The Indian bond market is sending shockwaves through the investment community. The 10-year government bond yield, a critical benchmark for the economy, has surged to a multi-year high of 6.60%. This level was unexpected by many, including DSP Investment Managers, who did not foresee yields breaking above 6.40%. For income-seeking investors, a near 7% return on sovereign debt is instinctively attractive. But is it a good buy? The answer is nuanced: while the yield is compelling, the path to realizing gains will be volatile, requiring a strategic and patient approach.

 On August 7, 2025, the United States imposed a 25% reciprocal tariff on Indian goods, with an additional 25% penalty set for August 27. This move places India among the most heavily tariffed US trade partners, alongside Brazil. While trade talks between the two nations are ongoing and may lead to a reduction, the current rates create significant headwinds for Indian exporters.