This week in Indian law: SEBI strengthened intraday position limits for equity index derivatives, the Supreme Court vacation bench cautioned against misuse of Section 498A in matrimonial cases, and the IBBI amended liquidation regulations to streamline asset disposal. Diverse developments across three categories as the Court vacation continues. 5 significant legal developments this week across securities, family law, and insolvency.
Top story
SEBI Strengthens Intraday Position Limits for Index Derivatives
Category: securities-market | Date: 29 May 2025 | Source: SEBI
SEBI issued a circular strengthening intraday position limits for equity index derivatives contracts. The new limits impose concentration caps on individual entities' intraday positions, requiring more granular monitoring of position build-up during trading hours. The circular aims to reduce systemic risk arising from concentrated derivative positions that could exacerbate market volatility during intraday swings.
Why it matters: Proprietary trading desks, institutional investors, and algo-trading firms must recalibrate their intraday trading strategies to stay within the new position limits. Risk management systems need to be updated to monitor real-time position compliance.
Read more: Veritect analysis
Court judgments
SC Cautions Against Misuse of Section 498A in Matrimonial Cases
Court: Supreme Court of India (Vacation Bench) | Date: 29 May 2025
A Supreme Court vacation bench reiterated the Court's concern over the misuse of Section 498A IPC (now Section 85 BNS) in matrimonial disputes. The observations came in a case where criminal proceedings under Section 498A were continued against extended family members despite the marriage having been dissolved. The Court cautioned that the provision, intended to protect women from cruelty, should not be weaponised as a tool of harassment in settled disputes.
Key point: Courts should scrutinise 498A complaints where the underlying matrimonial dispute has been resolved — continuation of proceedings in such cases may constitute abuse of process.
Supreme Court · Veritect analysis
Regulatory updates
IBBI Amends Liquidation Regulations to Streamline Asset Disposal
Date: 30 May 2025 | Source: IBBI
The Insolvency and Bankruptcy Board of India issued amendments to the IBBI (Liquidation Process) Regulations, 2016, introducing provisions to facilitate faster disposal of assets in liquidation proceedings. The amendments simplify auction procedures, reduce mandatory timelines for certain notices, and provide greater flexibility to liquidators in managing the realisation process.
Key point: Liquidators and stakeholders in ongoing liquidation proceedings should review the amended regulations — the streamlined procedures take effect immediately and apply to pending cases.
Also this week
- SEBI uniform expiry days — SEBI's mandate for uniform expiry days for equity derivatives contracts continues to be implemented by exchanges.
- RBI MPC preparation — Market participants anticipate the RBI MPC meeting in early June, with a potential third rate cut on the table.
By the numbers
- 498A — IPC section (now BNS 85) whose misuse the SC cautioned against
- 3 — Categories covered this week despite SC being on vacation
- 5.50% — Anticipated target repo rate if RBI delivers third consecutive cut in June
Looking ahead
- June 2-8: RBI MPC meeting — third rate cut expected; MeitY DPDP consent framework
- June: SEBI master circulars for transfer agents and investment advisers expected
- June-July: SC summer vacation continues; regulatory activity remains primary focus
This is the Veritect Weekly Legal Roundup for Week 22 of 2025. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.