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REGD. No. D. L.-33004/99
The Gazette of India
CG-MH-E-21032025-261821
EXTRAORDINARY
PART III-Section 4
PUBLISHED BY AUTHORITY
No. 186|
NEW DELHI, THURSDAY, MARCH 20, 2025/PHALGUNA 29, 1946
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 20th March, 2025
SECURITIES AND EXCHANGE BOARD OF INDIA (INTERMEDIARIES) (SECOND AMENDMENT)
REGULATIONS, 2025
F. No. SEBI/LAD-NRO/GN/2025/237.—In exercise of the powers conferred by section 30 of the
Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following
regulations to further amend the Securities and Exchange Board of India (Intermediaries) Regulations, 2008,
namely:—
1. These regulations may be called the Securities and Exchange Board of India (Intermediaries) (Second Amendment)
Regulations, 2025.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Intermediaries) Regulations, 2008,—
(I) after Chapter IIIB and before Chapter IV, the following Chapter shall be inserted, namely,—
"CHAPTER IIIC
VERIFICATION OF PAST RISK AND RETURN METRICS
Applicability
16D. The provisions of this chapter shall be applicable only to Investment Advisers, Research Analysts, Algo
Providers empaneled with a recognised stock exchange, and intermediaries permitted by the Board to provide
the services of Investment Advisers, Research Analysts and Algorithmic Trading.
Explanation—For the purposes of this Chapter, an algo provider shall mean a person empaneled with a
recognised stock exchange for providing the facility of algorithmic trading services, in the manner specified by
the recognised stock exchange.
Verification of risk-return metrics
16E (1). The persons referred to in Regulation 16D shall be permitted to make claim of returns or performance
in the form of risk and return metrics, which have been verified by a credit rating agency recognized by the
Board to carry out the activity of a Past Risk and Return Verification Agency.
(2) Any claim in the form of verified risk or return metrics as referred to in sub-regulation (1) shall be made in
the manner specified by the Board.
Action for Violation
16F. The Board may, in case of violation of sub-regulations (1) or (2) of Regulation 16E, take such action as it
may deem fit including action under Chapter V of these regulations."
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./1047/2024-25]
Footnote:
1. The Securities and Exchange Board of India (Intermediaries) Regulations, 2008 was published in the Gazette
of India, Part III Section 4 on May 26, 2008 vide notification No. LAD-NRO/GN/2008/11/126538.
2. The Securities and Exchange Board of India (Intermediaries) Regulations, 2008 was subsequently amended on:
a) August 11, 2008 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers)
(Amendment) Regulations, 2008, vide notification No. LAD-NRO/GN/2008/20/134766.
b) July 14, 2009 by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2009,
vide notification no. LAD-NRO/GN/2009-10/12/169546.
c) January 7, 2014 by the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014,
vide notification no. LAD-NRO/GN/2013-14/36/12.
d) May 25, 2016 by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2016,
vide notification no. SEBI/LAD-NRO/GN/2016-17/006.
e) November 21, 2017, by the Securities and Exchange Board of India (Intermediaries) (Amendment)
Regulations, 2017, vide notification no. SEBI/LAD-NRO/GN/2017-18/021.
f) April 17, 2020, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment)
Regulations, 2020, vide notification no. SEBI/LAD-NRO/GN/2020/10.
g) January 21, 2021, by the Securities and Exchange Board of India (Intermediaries) (Amendment)
Regulations, 2021, vide notification no. SEBI/LAD-NRO/GN/2021/07.
h) May 5, 2021, by the Securities and Exchange Board of India (Intermediaries) (Second Amendment)
Regulations, 2021,vide notification no. SEBI/LAD-NRO/GN/2021/20.
i) August 3, 2021, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment)
Regulations, 2021, vide notification no. SEBI/LAD-NRO/GN/2021/30.
j) November 17, 2021,by the Securities and Exchange Board of India (Intermediaries) (Third Amendment)
Regulations, 2021, vide notification no. SEBI/LAD-NRO/GN/2021/59.
k) August 1, 2022, by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations,
2022, vide notification no. SEBI/LAD-NRO/GN/2022/91.
l) August 29, 2024, by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2024,
vide notification no. SEBI/LAD-NRO/GN/2024/201.
m) December 4, 2024, by the Securities and Exchange Board of India (Intermediaries) (Second Amendment)
Regulations, 2024, vide notification no. SEBI/LAD-NRO/GN/2024/216.
n) February 6, 2025, by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2025,
vide notification no. SEBI/LAD-NRO/GN/2025/226.
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and Published by the Controller of Publications, Delhi-110054.
Digitally signed by SARVESH
KUMAR SRIVASTAVA
SRIVASTAVA Date: 2025.03.21 22:32:02
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