The Hindu Business Line : Uniform regulations for all market intermediaries

Mumbai, June 19 The market regulator SEBI has put in place uniform regulations to govern the common requirements, which apply to all the intermediaries in the market. “The regulations put in place a comprehensive regulation, which will apply to all intermediaries,” a SEBI press release said on Thursday.

These new regulations will cover the common areas of requirements and obligations, namely grant of registration, general obligations, common code of conduct, common procedure for action in case of default and other miscellaneous provisions.

Simple process

The SEBI has also simplified the registration process for market intermediaries, with new applicants having to file under the prescribed format. Under the new regulation, the existing intermediaries should file the disclosure norm in the specified form within the prescribed time and these disclosures will be made public by uploading the information on the Web site specified by SEBI.

Under the uniform regulation, the ‘code of conduct’ has been specified and ‘the fit and proper’ criteria too has been modified to make it principle-based.

Under the criteria for determining a ‘fit and proper person’, the board may take account of any consideration as it deems fit, including but not limited to the integrity, reputation and character of the person concerned, absence of convictions and restraint orders and the competence including financial solvency and networth in relation to the applicant or the intermediary, the principal officer and key management persons by whatever name called.

Common requirements

The intermediaries will have to permanently comply with the SEBI Act, regulations, updation of relevant disclosures and payment of fees, once the registration has been granted.

The procedure for action in case of default and manner of suspension or cancellation of certificate has also been simplified to make the process expeditious and avoid delay. Even the surrender of certificate has been made easier. While the common requirements of all intermediaries have been brought under the new uniform law, the intermediaries’ specific requirements will continue to be governed according to the relevant regulations applicable to individual intermediaries.

These relevant regulations will be amended to provide for the specific requirements by SEBI. .

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