**Executive Summary:**
This document contains the Securities and Exchange Board of India (SEBI) Intermediaries Amendment Regulations, 2017, which amends the SEBI Intermediaries Regulations, 2008. The regulations were published on November 21, 2017, and came into force on the same date. The amendments pertain to the appointment of an Executive Director and designated authority for proceedings related to defaults by registered persons.
**Key Points / Main Content:**
* **General Provisions:**
* These regulations are called the Securities and Exchange Board of India Intermediaries Amendment Regulations, 2017.
* These regulations came into force on November 21, 2017.
* **Amendments to the 2008 Regulations:**
* **Regulation 22 Amendment:** A new clause is inserted after clause c, defining "Executive Director" as an officer of the Board appointed by the Board.
* **Regulation 24 Amendment:**
* Subregulation 1 is substituted, stating that if a designated member believes a registered person has committed a default under regulation 23, the member may approve initiation of proceedings.
* The Executive Director will appoint an officer (not below the rank of a Division Chief) as a designated authority.
* The executive director may, at his discretion, appoint a bench of three officers, each of whom shall not be below the rank of a Division Chief: Provided further that such bench shall be presided by the senior most amongst them and all the decisions or recommendations of such bench shall be by way of majority.
* Existing subregulation 2 is renumbered as subregulation 3.
**Impact Analysis:**
* **Securities and Exchange Board of India (SEBI):**
* *Impact:* SEBI's powers are exercised through the amendment regulations under Section 30 of the SEBI Act, 1992.
* *Action Required:* Implement the amended regulations regarding the appointment of the Executive Director and designated authority.
* **Designated Members:**
* *Impact:* Designated members are empowered to initiate proceedings against registered persons who have defaulted.
* *Action Required:* Review cases and approve proceedings where defaults are identified.
* **Executive Director:**
* *Impact:* The Executive Director is responsible for appointing a designated authority (or a bench of officers) to handle proceedings.
* *Action Required:* Appoint a qualified officer or bench of officers as designated authority.
* **Registered Persons (Intermediaries):**
* *Impact:* Subject to potential proceedings under the amended regulations if they commit defaults as specified in regulation 23.
* *Action Required:* Ensure compliance with regulations to avoid defaults and potential proceedings.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): A regulatory body for the securities market in India.
Securities and Exchange Board of India Act, 1992: The Act of the Indian Parliament that established the Securities and Exchange Board of India.
Securities and Exchange Board of India Intermediaries Regulations, 2008: Regulations pertaining to intermediaries in the securities market as defined by SEBI.
Securities and Exchange Board of India Intermediaries Amendment Regulations, 2017: Amendment regulations to the Securities and Exchange Board of India Intermediaries Regulations, 2008.
Mumbai, Maharashtra: The city in Maharashtra, India, where the notification was issued.
Official Gazette: The official government publication where regulations are published.
Executive Director: An officer of the Securities and Exchange Board of India appointed by the Board.
Ajay Tyagi: Chairman of the Securities and Exchange Board of India at the time of notification.
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EXTRAORDINARY
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PART III—Section 4
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PUBLISHED BY AUTHORITY
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No. 444] NEW DELHI, TUESDAY, NOVEMBER 21, 2017/KARTIKA 30, 1939
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूूतततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
अअअअििििधधधधससससचचूूचचूू ननननाााा
मु(cid:3)बई, 21 नव(cid:3)बर, 2017
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूूतततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)((((मममम(cid:11)(cid:11)(cid:11)(cid:11)ययययववववतततत(cid:14)(cid:14)(cid:14)(cid:14))))) ((((ससससंशंशंशंशोोोोधधधधनननन)))) ििििववववििििननननययययमममम,,,, 2222000011117777
ससससं.ं.ं.ं. ससससबबेेबबेे ीीीी//// एएएएलललल....एएएए....डडडडीीीी....----एएएएनननन....आआआआरररर.... ओओओओ....//// जजजजीीीी.... एएएएनननन....//// 2222000011117777----11118888//// 000022221111.— बोड(cid:11), भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) अिधिनयम,
1992 (1992 का 15) क(cid:18) धारा 30 के अधीन (cid:12)द(cid:20) शि(cid:22)य(cid:24) का (cid:12)योग करते (cid:26)ए एत(cid:28)ारा भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11)
(म(cid:30)यवत(cid:31)) िविनयम, 2008 का और संशोधन करने के िलए िन िलिखत िविनयम बनाता ह,ै अथा(cid:11)त् :-
1. इन िविनयम(cid:24) को भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) (म(cid:30)यवत(cid:31)) (संशोधन) िविनयम, 2017 कहा जा सकेगा ।
2. वे राजप( म) उनके (cid:12)काशन क(cid:18) तारीख को (cid:12)वृ(cid:20) ह(cid:24)ग े।
3. भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) (म(cid:30)यवत(cid:31)) िविनयम, 2008 म),-
क. िविनयम 22 म), खंड (ग) के प.ात् एक नया खंड अंत:0थािपत 1कया जाएगा, अथा(cid:11)त् –
"(गक) "काय(cid:11)पालक िनदशे क" से बोड (cid:11) का वह अिधकारी अिभ(cid:12)ेत ह,ै िजसे बोड (cid:11) 7ारा इस पद पर िनयु(cid:22) 1कया
जाए ।"
ख. िविनयम 24 म), -
i. मौजूदा उप-िविनयम (1) िन िलिखत उप-िविनयम(cid:24) से (cid:12)ित0थािपत हो जाएगा, अथा(cid:11)त् –
"(1) जहाँ पदािभिहत सद0य (डेिस>ेटेड मे(cid:3)बर) को यह (cid:12)तीत होता ह ै 1क ऐसे 1कसी @ि(cid:22), िजसे
अिधिनयम और उसके अधीन बनाए गए िविनयम(cid:24) के अधीन रिज0Aीकरण (cid:12)माणप( (cid:12)दान 1कया गया हो,
ने कोई ऐसी चूक क(cid:18) ह ैिजसका उCलेख िविनयम 23 म) 1कया गया ह,ै तो वह पदािभिहत सद0य ऐसे @ि(cid:22)
के िखलाफ इस अ(cid:30)याय के अधीन काय(cid:11)वािहया ँशुD करने का अनुमोदन द ेसकेगा ।
6831 GI/2017 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(2) काय(cid:11)पालक िनदशे क तEप.ात् पदािभिहत (cid:12)ािधकारी (डिेस>ेटेड अथॉGरटी) के Dप म) एक ऐसे
अिधकारी को िनयु(cid:22) करेगा, जो (cid:12)भाग मुHय (िडवीज़न चीफ) के ओहद ेसे नीचे का न हो:
परंतु यह 1क काय(cid:11)पालक िनदशे क, अपने िववेकानुसार, तीन अिधकाGरय(cid:24) क(cid:18) एक पीठ (बIच) क(cid:18)
िनयुि(cid:22) कर सकेगा, िजनम) से (cid:12)Eयेक अिधकारी (cid:12)भाग मुHय के ओहद ेसे नीचे का न हो:
परंतु यह और 1क ऐसी पीठ (बIच) क(cid:18) अ(cid:30)यMता उस पीठ (बIच) के अिधकाGरय(cid:24) म) से सबसे
वGरN अिधकारी 7ारा क(cid:18) जाएगी और ऐसी पीठ (बIच) 7ारा सभी िनण(cid:11)य ब(cid:26)मत के आधार पर िलए
जाएँगे या िसफाGरश) ब(cid:26)मत के आधार पर क(cid:18) जाएँगी ।"
ii. मौजूदा उप-िविनयम (2), उप-िविनयम (3) के Dप म) पुनःसंHयां1कत हो जाएगा ।
अजय Eयागी, अ(cid:30)यM
[िवRापन–III/4/असा./312/17]
पपपपाााादददद (cid:15)(cid:15)(cid:15)(cid:15)टटटट(cid:17)(cid:17)(cid:17)(cid:17)पपपपणणणण ::::
1. भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) (म(cid:30)यवत(cid:31)) िविनयम, 2008, अिधसूचना सं. एलएडी-एनआरओ/जीएन/ 2008/11/
126538 7ारा 26 मई, 2008 को भारत के राजप(, भाग III, खSड 4 म) (cid:12)कािशत (cid:26)ए थे ।
2. भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) (म(cid:30)यवत(cid:31)) िविनयम, 2008 तEप.ात् :-
क. 11 अग0त, 2008 को भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) (0टॉक दलाल और उप-दलाल) (संशोधन) िविनयम,
2008, अिधसूचना सं. एलएडी-एनआरओ/जीएन/2008/20/134766, 7ारा
ख. 14 जुलाई, 2009 को भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) (म(cid:30)यवत(cid:31)) (संशोधन) िविनयम, 2009, अिधसूचना सं.
एल.ए.डी.-एन.आर.ओ./जी.एन./2009-10/12/169546, 7ारा
ग. 7 जनवरी, 2014 को भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) [िवदेशी पोटफ(cid:11) ोिलयो िविनधानकता (cid:11) (िनवेशक)]
िविनयम, 2014, अिधसूचना सं. एल.ए.डी.एन.आर.ओ./जी.एन./2013-14/36/12, 7ारा
घ. 25 मई, 2016 को भारतीय (cid:12)ितभूित और िविनमय बोड(cid:11) (म(cid:30)यवत(cid:31)) (संशोधन) िविनयम, 2016, अिधसूचना सं.
सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/006, 7ारा संशोिधत (cid:26)ए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 21st November, 2017
SECURITIES AND EXCHANGE BOARD OF INDIA (INTERMEDIARIES) (AMENDMENT)
REGULATIONS, 2017
No. SEBI/LAD-NRO/GN/2017-18/021.—In exercise of the powers conferred under 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, 2017.
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, -
a. in regulation 22, a new clause shall be inserted after clause (c), namely –¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
“(ca) “Executive Director” means an officer of the Board who is appointed as such by the
Board”.
b. in regulation 24, -
i. the existing sub-regulation (1) shall be substituted by the following sub-regulations,
namely –
“(1) Where it appears to the designated member, that any person who has been granted a
certificate of registration under the Act and regulations made thereunder has committed any
default of the nature specified in regulation 23, the designated member may approve the
initiation of proceedings under this Chapter against such person.
(2) The Executive Director shall thereafter appoint an officer not below the rank of a
Division Chief, as a designated authority:
Provided that the executive director may, at his discretion, appoint a bench of three
officers, each of whom shall not be below the rank of a Division Chief:
Provided further that such bench shall be presided by the senior most amongst them
and all the decisions or recommendations of such bench shall be by way of majority.
ii. the existing sub-regulation (2) shall be re-numbered as sub-regulation (3).
AJAY TYAGI, Chairman
[ADVT-III/4/Exty./312/17]
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.
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.