Registration of mkt intermediaries to be eased

The Securities and Exchange Board of India (Sebi) board has also cleared a proposal to simplify the registration of capital market intermediaries. “In the present regime, a dozen regulations govern different categories of intermediaries. The broad framework of such regulations is similar to one another. The new regulations seek to consolidate the common requirements and put in place a comprehensive framework,” it said. The new regulations — mostly principle based — seek to simplify procedures to make the registration/regulation process of intermediaries less burdensome and cost effective without diluting the regulatory oversight.

Subject to compliance with the Sebi Act, regulations, updation of relevant disclosures and payment of fees registration will be permanent. “The process for registration for undertaking multiple activities by the same intermediary has been simplified,” Sebi chairman M Damodaran said.

According to the Sebi, part one of the registration form will be disclosed and available to the public and part two will contain such information which will be retained with the board as regulatory filing. The criteria to determine whether the intermediary is a ‘fit and proper’ person have been revised and are now principle based. The procedure for suspension or cancellation has been simplified and the time taken in this regard is sought to be reduced.