If you’re keeping an eye on India’s financial space , June 2025 was actually quite buzzing in terms of regulatory updates. Especially from the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI)—a lot happened. Let’s walk through the notable circulars, what they mean to you and me, and how they might tie into broader themes like RBI’s Monetary Policy and certifications provided by SEBI & NISM.
SEBI Circular Highlights – June 2025
- Framework for ESG Debt Securities (excluding green bonds)
On June 5, 2025, SEBI released a circular that sets out a regulatory framework covering issuance of social bonds, sustainability bonds, and sustainability-linked bonds, collectively known as ESG debt securities. This means that if your startup or fund is thinking of raising capital with a social or sustainable framework you need to comply with the new set of rules. - Relaxation for Issuers of Non-Convertible Securities (NCS)
Also on June 5, SEBI granted relief regarding Regulation 58(1)(b) of the Listing Obligations and Disclosure Requirements (LODR) Regulations. Companies issuing NCS often had to send hard-copy financial statements to bondholders who hadn’t registered an email. Now, as long as they follow certain MCA rules and publish a web link in required ads, they won’t be penalized. - Structured UPI-ID Mechanism for SEBI-registered intermediaries
On June 11, 2025, SEBI issued another circular mandating use of standardized, validated UPI IDs for payment collection by SEBI registered intermediaries. This helps reduce confusion and fraud risk when you’re paying your mutual fund house or broker. - Enhanced Oversight of Trading Members Post-Inspection
SEBI also tightened compliance oversight. A circular issued around June 25, 2025, directed stock exchanges (like BSE) to ensure trading members who were found non-compliant in inspections act swiftly. Delays over 45 days may cause bans on onboarding new clients or even blocking of their trading terminals. This signals SEBI’s renewed focus on market integrity. - Eased Compliance for G-Sec-only FPIs
On June 18, 2025, SEBI relaxed compliance requirements for Foreign Portfolio Investors (FPIs) who invest only in government securities. The changes include eased KYC norms and extended timelines for disclosures—clearly aimed at boosting long-term flows into government debt. If you’re budgeting for future financial milestones—even as an Indian millennial—this move could eventually translate into better G-Sec yields or deeper bond markets.
RBI Circular Highlights – June 2025
- Discontinuation of Daily VRR Auctions
On June 9, RBI announced it would discontinue daily Variable Rate Repo (VRR) auctions starting June 11, 2025, responding to surplus liquidity in the system. In plain English, banks no longer queue daily to borrow from the central bank. The move reflects a calm liquidity environment, shifting RBI’s liquidity tools and having ripple effects on lending rates and monetary policy stance. - Easing KYC Norms for Low-Risk Customers
On June 12, 2025, RBI eased KYC norms: low-risk customers can continue transacting even if KYC is pending, till June 30, 2026. Banking correspondents can now help customers update their KYC, which is a big win for financial inclusion and convenience. This is particularly relevant if you’re handling personal finance, less friction in updating your banking details, easier budgeting and fewer hassles. - Master Direction: Electronic Trading Platforms (ETPs)
RBI issued on June 16, 2025, the Master Direction – RBI (Electronic Trading Platforms) Directions, 2025, updating the 2018 Framework. Now, all ETP operators handling securities, money-market assets, forex, derivatives must be Indian-incorporated, meet a minimum net worth of ₹5 crore, follow governance, cyber-security, algo-trading norms, and maintain real-time records with 10 years retention. - Amendments to Microfinance Lending Framework
Also on June 6, RBI amended its Master Direction – Regulatory Framework for Microfinance Loans, 2022, redefining “qualifying assets” for NBFC-MFIs based on a broader definition in the master direction. This could affect access to small loans in rural and underserved areas, which matters if you’re budgeting or planning for inclusive growth. - Revised PSL Norms for SFBs
On the same day June 16, RBI revised Priority Sector Lending (PSL) norms: for Small Finance Banks (SFBs), the flexible component drops from 35% to 20%, making total PSL target 60% of ANBC/CEOBE, with 40% to mandatory sectors and 20% where they have advantage. This gentle shift may affect micro-credit flows and rural financing dynamics.
Weaving in the Broader Themes
- Easier KYC norms, stable liquidity operations (like halting VRR—one of RBI’s monetary-policy tools), and deeper G-Sec markets all paint a picture where investors trying to save, invest, or take small loans face fewer roadblocks.
- The ETP guidelines and SEBI’s enhanced oversight make markets more reliable—not just for institutional players, but for young investors eyeing ETFs, bonds or mutual funds
Final Thoughts
June 2025 wasn’t quiet. Both SEBI and RBI made moves that subtly reshaped our financial world—from the way we invest (ESG bonds, G-Secs) to how we access our own accounts (KYC ease) and the infrastructure that powers it all (ETPs, UPI IDs, regulatory oversight). If you’re prepping for a SEBI certification or an RBI exam this digest shows you how the regulatory turf is evolving.
