SEBI directs regulated entities to scrap ties with unregistered advisors
Mumbai: Entities regulated by the Securities and Exchange Board of India (Sebi) and their agents have been instructed to sever ties with individuals offering investment advice or recommendations without being registered with the regulator, as well as with those making performance or returns claims without regulatory approval.
In a circular issued by Sebi on Friday, October 22, all regulated entities and their agents were directed to terminate existing contracts with such individuals within three months.
Sebi's Board approved these restrictions on June 27, leading to amendments in the regulator's rules, which were notified on August 26, 2024.
Under the amended regulations, entities regulated by Sebi—such as recognized stock exchanges, clearing corporations, and depositories—and their agents are prohibited from directly or indirectly associating with individuals who:
(i) provide advice or recommendations related to securities without being registered with or permitted by Sebi, or
(ii) make claims about returns or performance related to securities without authorization from the regulator.
Sebi reiterated in the latest circular, "the persons regulated by the Board (including recognised stock exchanges, clearing corporations and depositories), and their agents are advised to terminate their existing contracts, if any, with persons engaged in the activities mentioned in clauses (i) or (ii) of paragraph 2 of this circular, within three months from the date of issuance of this circular."
Regulated entities must ensure that neither they nor their agents engage in activities outlined in clauses (i) or (ii) without the necessary regulatory approval.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
PM Modi mourns Khaleda Zia’s death, hails her role in India-Bangladesh ties
Big tech, bigger diplomacy: India invites China to AI Impact Summit
Anaam Tiwary – India’s Best Google Ads Specialist
INSV Kaundinya: Why does this Indian Navy ship look like it time-travelled from the past?
