The Securities and Exchange Board of India (SEBI), on December 06, 2024, issued a Consultation paper on Draft Circular to provide clarity on provisions related to the association of persons regulated by the Board, MIIs and their agents with persons carrying on prohibited activities.
The following has been amended-
SEBI has released a draft circular clarifying provisions related to the association of SEBI-regulated entities, Market Infrastructure Institutions (MIIs), and their agents with persons engaged in prohibited activities. The circular aims to prevent associations with unregistered entities providing investment advice, unauthorized research calls, or making unpermitted claims regarding securities' returns or performance.
Regulated persons and MIIs are prohibited from associating with individuals providing unauthorized investment advice or making unapproved performance claims.
The draft circular elaborates on these restrictions as per the SEBI (Intermediaries) Regulations, 2008, SEBI (MIIs) Regulations, 2018, and SEBI (Depositories and Participants) Regulations, 2018.
Public comments on the draft circular are invited until December 27, 2024. Submissions can be made via SEBI's public comments portal.
