Sebi may slow reform pace in 2026 after a year of regulatory churn

New year ender line: Dear reader, as 2025, a year of global tumult and volatility, rolled by, Mint's reporters and columnists looked around the corner on what is coming in 2026—to help you know what to expect and prepare for it. Tell us what you think at [email protected].After a year of sweeping regulatory reforms, the market regulator is expected to focus less on new rulemaking in 2026 and more on consolidating and implementing its 2025 overhauls.

The progress of the proposed Securities Markets Code through Parliament further signals a year of operational transition rather than fresh regulatory shocks.Experts said the coming year is likely to be shaped by an operational shift as intermediaries, fund houses and listed companies adapt to new regulatory frameworks. While Sebi has signalled a shift towards ease of doing business, compliance and enforcement, the transition is expected to test market participants.“Sebi's major regulatory overhaul in 2025 covering mutual funds, LODR (listing obligations and disclosure requirements), stockbroker regulations, settlement frameworks and AIF (alternative investment fund) norms is expected to make 2026 a year focused on consolidation, improved ease of doing business and stronger market discipline,” said Nirali Mehta, partner at Mindspright Legal.She added that what distinguished the changes of 2025 was their scale, unlike earlier reforms that were typically sector-specific.The most talked about reset came in mutual fund regulation, when Sebi proposed a comprehensive overhaul of the total expense ratio (TER) framework.The proposals sought clearer and more standardized cost disclosures, removal of opaque expense components from TER, and tighter caps on brokerage costs.