{"id":2758,"date":"2021-02-26T06:33:12","date_gmt":"2021-02-26T06:33:12","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2758"},"modified":"2021-02-26T06:33:15","modified_gmt":"2021-02-26T06:33:15","slug":"sebi-intermediaries-amendment-regulations-2021","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/sebi-intermediaries-amendment-regulations-2021\/","title":{"rendered":"SEBI (Intermediaries) (Amendment) Regulations 2021: A Complete Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The SEBI (Securities\nBoard of India) on 21.01.2021 has issued the SEBI (Intermediaries) (Amendment)\nRegulations 2021, which seek to amend the provisions of the SEBI\n(Intermediaries) Regulations 2008. Further, these regulations will come into\nforce from the date of publication in the Official Gazette.<\/p>\n\n\n\n<p>In this blog, we will\ndiscuss the changes bought by way of SEBI (Intermediaries) (Amendment)\nRegulations 2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aa3db3f02a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aa3db3f02a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-intermediaries-amendment-regulations-2021\/#Key_Provisions_of_the_SEBI_Intermediaries_Amendment_Regulations_2021\" title=\"Key Provisions\nof the SEBI (Intermediaries) (Amendment) Regulations 2021\">Key Provisions\nof the SEBI (Intermediaries) (Amendment) Regulations 2021<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-intermediaries-amendment-regulations-2021\/#Substitution_of_Regulation_25_with_Holding_of_Enquiry\" title=\"Substitution of Regulation 25 with Holding of Enquiry\">Substitution of Regulation 25 with Holding of Enquiry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-intermediaries-amendment-regulations-2021\/#Substitution_of_Regulation_26_with_Recommendation_of_Action\" title=\"Substitution of Regulation 26 with Recommendation of Action\">Substitution of Regulation 26 with Recommendation of Action<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-intermediaries-amendment-regulations-2021\/#Substitution_of_Regulation_27_with_Order\" title=\"Substitution of Regulation 27 with Order\">Substitution of Regulation 27 with Order<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-intermediaries-amendment-regulations-2021\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-intermediaries-amendment-regulations-2021\/#Official_Notification_passed_by_SEBI\" title=\"Official Notification passed by SEBI\">Official Notification passed by SEBI<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Provisions_of_the_SEBI_Intermediaries_Amendment_Regulations_2021\"><\/span>Key Provisions\nof the SEBI (Intermediaries) (Amendment) Regulations 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key provisions of the SEBI (Intermediaries)\n(Amendment) Regulations 2021 are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Regulation_25_with_Holding_of_Enquiry\"><\/span>Substitution of Regulation 25 with Holding of Enquiry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The newly amended provisions of Regulation 25 deals\nwith the procedure for holding an enquiry. Further, based on the said\nprovisions, the designated authority will send the show cause notice to the\nperson against whom the action will be initiated.<\/p>\n\n\n\n<p>After that, the noticee will need to file a written\nreply for the same within 21 days, starting from the date of service. However,\nthe said period will only be extended in the case of sufficient cause.<\/p>\n\n\n\n<p>Further, it shall be noted that every notice sent\nmust specify the contravention made by the noticee. Also, all the documents,\nnecessary copies on which the designated authority has relied during the process\nof investigation, inquiry must be annexed with the notice as well. <\/p>\n\n\n\n<p>Moreover, if in case the noticee wants to examine\nthe documents relied upon, the designated authority may grant him\/ her the\npermission of the same. However, such an inspection must be allowed within 30\ndays from the date of request.<\/p>\n\n\n\n<p>The designated authority, if of the opinion, may\ngrant the chance of personal hearing, but the same is not allowed if the noticee\nhas failed to pay the fees applicable or has been declared Fugitive Offender or\nWilful Defaulter.<\/p>\n\n\n\n<p>Lastly, if in case the noticee does not reply to the notice issued, then the designated authority may pass ex-parte order based on the material present on record.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/mutual-fund-participation-in-etcds-and-new-norms-introduced-by-sebi\/\">Mutual Fund Participation in ETCDs: New Norms Introduced by SEBI<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Regulation_26_with_Recommendation_of_Action\"><\/span>Substitution of Regulation 26 with Recommendation of Action<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Based on the new provisions of Regulation 26, the\ndesignated authority, after considering the material record available, may pass\neither of the measures listed through a report:<\/p>\n\n\n\n<ul><li>Dispose of the proceedings with taking any adverse action;<\/li><li>Cancellation of the registration certificate;<\/li><li>Suspension of the registration certificate for a certain period;<\/li><li>Prohibition to the noticee from taking any new project or <a href=\"https:\/\/en.wikipedia.org\/wiki\/Assignment\">assignment<\/a>;<\/li><li>Debarment of an officer of the noticee from being appointed or employed with any registered intermediary;<\/li><li>Issuance of regulatory censure to the said noticee;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Regulation_27_with_Order\"><\/span>Substitution of Regulation 27 with Order<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Based on the new provisions of Regulation 27, the\ndesignated member, after receiving the report containing measures suggested by\nthe designated authorities, will forward a copy of the same to the noticee and\nwill record his\/ her submission in writing as to why such measures shall not\ntake place.<\/p>\n\n\n\n<p>Further, it will be the duty of the noticee to file\nhis\/ her reply within a period of twenty one days, together with the\ndocumentary proof for his\/ her submission.<\/p>\n\n\n\n<p>After that, if the designated member is of the\nopinion that the submission made by the noticee is justified, then, in that case,\nit may resubmit the report back to the designated authority.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, SEBI, by way of the powers conferred\nunder the provisions of section 30 of the SEBI Act 1992, has notified the SEBI (Intermediaries)\n(Amendment) Regulations 2021 on 21.01.2021. These amended rules will substitute\nthe existing provisions of Rule 25 \u2013 27 of the SEBI (Intermediaries)\nRegulations 2008. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_Notification_passed_by_SEBI\"><\/span>Official Notification passed by SEBI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Official-Notification-passed-by-SEBI.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Official-Notification-passed-by-SEBI<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/revision-of-disclosure-format-by-sebi\/\">Revision of Disclosure Format under Prohibition of Insider Trading Regulations by SEBI<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEBI (Securities Board of India) on 21.01.2021 has issued the SEBI (Intermediaries) (Amendment) Regulations 2021, which seek to amend the provisions of the SEBI (Intermediaries) Regulations 2008. Further, these regulations will come into force from the date of publication in the Official Gazette. In this blog, we will discuss the changes bought by way [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2760,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[64],"tags":[432],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2758"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2758"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2758\/revisions"}],"predecessor-version":[{"id":2763,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2758\/revisions\/2763"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2760"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}