Key regulatory and market developments as of July 21, 2025:

Domestic (India)
🔹 SEBI
Introduced the VCF Settlement Scheme 2025, effective July 21–Jan 19, 2026. This allows legacy Venture Capital Funds (VCFs) that migrated under AIF regulations to settle winding‑up violations. Applications are due by July 19. Note: settlement costs borne by fund managers, not investors
🔹 RBI
Conducted a ₹1 lakh crore VRRR operation (15–17 Jul) to absorb surplus liquidity

Switched ₹32,000 crore of government bonds to longer-term securities on July 21, easing fiscal redemption pressure through FY29

.Extended call money market timings: call money till 7 pm and market repo to 4 pm (effective Jul 1 and Aug 1)
.
Rescheduled next MPC from August 5–7 to August 4–6 (administrative update)

Imposed monetary penalties on several co-operative banks (e.g. Karnataka, Telangana) for regulatory violations
Reserve Bank of India

Global Regulatory Highlights
🔹 United States
Fed Governor Christopher Waller publicly advocated an interest rate cut at the upcoming FOMC meeting, citing softened growth and inflation, diverging from Powell’s cautious stance
OCC enforcement actions released in June, targeting national banks and savings associations
OCC.gov

🔹 Europe / UK
ECB supervisors are integrating geopolitical, tariff, cyber, and dollar‑liquidity risks into bank resilience testing next year

BoE/PRA delayed Basel-III FRTB capital rules implementation for trading books to Jan 1, 2028, also easing liquidity/resolution rules for smaller banks

🔹 International & BIS
BIS warned against global economic fragmentation, signaling risk to bond markets and urging central bank coordination amid rising trade protectionism
The Times
.

FT reports Asia, UK, and South Korea exploring stablecoin frameworks, while many central banks race to develop CBDCs for monetary control
Financial Times
.
Key Takeaways

SEBI: Launched VCF Settlement Scheme (Jul 21–Jan 19)
RBI: VRRR liquidity absorption; bond switch; longer market hours; MPC rescheduling; bank penalties
US Fed: Waller calls for rate cut; OCC enforcement
EU/UK: ECB adds risk scenarios; BoE delays FRTB rules
International
BIS flags fragmentation risk; stablecoin/CBDC regulatory shifts

Bottom line:
India’s market regulators (SEBI & RBI) are proactively managing liquidity, settlement backlogs, and banking compliance. Globally, central banks face trade, cyber, and monetary challenges—triggering regulatory recalibrations. In the US, interest rate trajectory is under renewed debate, while Europe adapts to evolving Basel conventions. Broadly, the focus remains on ensuring financial stability amid shifting macroeconomic dynamics.