Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-MH-E-29082024-256733
EXTRAORDINARY
PART III—Section 4
PUBLISHED BY AUTHORITY
No. 673]
NEW DELHI, THURSDAY, AUGUST 29, 2024/BHADRA 7, 1946
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 26th August, 2024
SECURITIES AND EXCHANGE BOARD OF INDIA (INTERMEDIARIES) (AMENDMENT)
REGULATIONS, 2024
No. SEBI/LAD-NRO/GN/2024/201 .-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) (Amendment)
Regulations, 2024.
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, after Chapter III and before
Chapter IV, the following Chapter shall be inserted, namely, -
"CHAPTER IIIA
RESTRICTION IN DEALING WITH OTHER ENTITIES
Restriction in having association with certain persons
16A. (1) No person regulated by the Board or the agent of such a person shall have any direct or indirect
association, with another person who-
(i) provides advice or any recommendation, directly or indirectly, in respect of or related to a security or
securities, unless the person is registered with or otherwise permitted by the Board to provide such
advice or recommendation; or
(ii) makes any claim, of returns or performance expressly or impliedly, in respect of or related to a security
or securities, unless the person has been permitted by the Board to make such a claim:
Provided that the provisions of this sub-regulation shall not apply in respect of an association through a specified
digital platform.
(2) The person regulated by the Board shall ensure that any person associated with it or its agent does not engage in
the activities mentioned in clauses (i) or (ii) of sub-regulation (1) without the necessary permission.
Explanation 1. – For the purposes of this regulation, the expression “person regulated by the Board” shall mean –
(a) a person registered with the Board under section 12 of the Act;
(b) an asset management company of a mutual fund registered with the Board;
(c) investment manager of an alternative investment fund or infrastructure investment trust registered with the
Board;
(d) manager of a real estate investment trust registered with the Board.
Explanation 2. – For the purposes of this regulation, the expression “association" shall mean-
(a) a transaction involving money or money's worth;
(b) referral of a client;
(c) interaction of information technology systems;
(d) any other association of a similar nature or character.
Explanation 3. – For the purposes of this regulation, the expression "specified digital platform" shall mean a digital
platform as specified by the Board, which has a mechanism in place to take preventive as well as curative action, to
the satisfaction of the Board, to ensure that such a platform is not used for indulging in any activity as referred to in
clause (i) or (ii) of sub-regulation (1).
Explanation 4. – For the removal of doubts, it is clarified that the term "another person" in this regulation shall not
include a person who is engaged in investor education, provided that such a person does not, directly or indirectly,
indulge in any activity as referred to in clause (i) or (ii) of sub-regulation (1) without the necessary permission.
16B. The Board may, in case of violation of any of the provisions of Regulation 16A, take such action as it may deem
fit including action under Chapter V of these regulations."
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./442/2024-25]
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.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
Login to read full text