Executive Summary:
This document outlines the Securities and Exchange Board of India (SEBI) Intermediaries Amendment Regulations, 2016, which amends the SEBI Intermediaries Regulations, 2008. It defines "wilful defaulter" and modifies requirements related to principal officers, directors and promoters. The regulations came into force on the date of their publication in the Official Gazette on May 25, 2016.
Key Points / Main Content:
* **General Regulations**
* These regulations are called the Securities and Exchange Board of India Intermediaries Amendment Regulations, 2016.
* The regulations came into force on the date of their publication in the Official Gazette.
* **Amendments to the Securities and Exchange Board of India Intermediaries Regulations, 2008**
* In regulation 2, subregulation 1, clause m, the symbol "." is substituted with ";".
* After clause m, clause n is inserted, defining "wilful defaulter" as a person categorized as such by any bank, financial institution, or consortium based on Reserve Bank of India guidelines, including those whose director, promoter, or principal officer is categorized similarly.
* In Schedule II, after "principal officer" and before "and the key management persons", the words "the director, the promoter" are inserted.
* In Schedule II, clause c, the symbol "." is substituted with ";".
* After clause c, clause d is inserted, requiring disclosure of "absence of categorization as a wilful defaulter."
Impact Analysis:
* **Intermediaries (including Directors, Promoters, and Principal Officers)**
* *Impact:* Intermediaries now need to ensure that directors, promoters, and principal officers are not categorized as wilful defaulters, as defined by the amended regulations. They must also disclose if they are not categorized as a wilful defaulter.
* *Action Required:* Review internal procedures to incorporate the new definition of "wilful defaulter," verify the status of directors, promoters, and principal officers, and implement necessary disclosures.
* **Securities and Exchange Board of India (SEBI)**
* *Impact:* SEBI's regulatory framework for intermediaries is updated with a clearer definition of "wilful defaulter" and enhanced due diligence requirements.
* *Action Required:* Enforce the amended regulations during inspections and compliance checks of intermediaries.
* **Banks and Financial Institutions:**
* *Impact:* The definition of "wilful defaulter" as defined by them is now directly referenced within SEBI regulations, strengthening the link between the banking sector's assessment of defaulters and the securities market's regulatory oversight of intermediaries.
* *Action Required:* No direct action is required as the regulation reinforces existing guidelines.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body for securities and commodity market in India.
Securities and Exchange Board of India Act, 1992: The act of the Parliament of India that established the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India Intermediaries Regulations, 2008: Regulations by SEBI concerning intermediaries in the securities market.
Securities and Exchange Board of India Intermediaries Amendment Regulations, 2016: Amendments to the Securities and Exchange Board of India Intermediaries Regulations.
Mumbai, Maharashtra: The city where the Securities and Exchange Board of India (SEBI) notification was issued.
Reserve Bank of India: The central bank of India.
U.K. Sinha: The Chairman of the Securities and Exchange Board of India (SEBI) at the time of notification.
Securities and Exchange Board of India Foreign Portfolio Investors Regulations, 2014: Regulations by SEBI concerning foreign portfolio investors.
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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. 227] NEW DELHI, WEDNESDAY, MAY 25, 2016/JYAISTHA 4, 1938
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, 10 मई, 2016
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,,,, 2222000011116666
ससससंं..ंं.. ससससेबेबेबेबीीीी//// एएएएलललल.... एएएए.... डडडडीीीी.... ---- एएएएनननन....आआआआरररर.... ओओओओ....//// जजजजीीीी.... एएएएनननन....//// 2222000011116666----11117777//// 000000006666.- बोड(cid:8), भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) अिधिनयम,
1992 (1992 का 15) क(cid:15) धारा 30 के अधीन (cid:9)द(cid:17) शि(cid:19)य(cid:21) का (cid:9)योग करते (cid:23)ए एत(cid:25)ारा भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8)
(म(cid:28)यवत(cid:30)) िविनयम, 2008 का और संशोधन करने के िलए िन िलिखत िविनयम बनाता ह,ै अथा(cid:8)त् :-
1. इन िविनयम(cid:21) को भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) (म(cid:28)यवत(cid:30)) (संशोधन) िविनयम, 2016 कहा जा सकेगा ।
2. वे राजप( म) उनके (cid:9)काशन क(cid:15) तारीख को (cid:9)वृ(cid:17) ह(cid:21)ग े।
3. भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) (म(cid:28)यवत(cid:30)) िविनयम, 2008 म):-
(I) िविनयम 2 म), उप-िविनयम (1) म),-
(1) खंड (ड) म), िच.न “।” के िलए, िच.न “;” (cid:9)ित/थािपत हो जाएगा;
(2) खंड (ड) के प0ात,् िन िलिखत खंड अंतः/थािपत 3कया जाएगा, अथा(cid:8)त,्-
“(ढ) "इरादतन चूककता(cid:8)" से कोई ऐसा 4ि(cid:19) अिभ(cid:9)ेत ह,ै िजसे भारतीय 5रज़व (cid:8)ब7क 8ारा इरादतन चूककता(cid:8)9 के संबंध
म) जारी 3कए गए माग(cid:8)दश(cid:8)क िस;ाँत(cid:21) (गाइडलाइ>स) के अनुसार, 3कसी ब7क या िव(cid:17)ीय सं/था या उनके कनसॉAटयम
8ारा, इरादतन चूककता(cid:8) के Cप म) वग(cid:30)कृत 3कया गया हो और िजसम) कोई ऐसा 4ि(cid:19) सि(cid:3)मिलत ह ै िजसके िनदेशक
(डायरेDटर), सं(cid:9)वत(cid:8)क ((cid:9)ोमोटर) या (cid:9)धान अिधकारी (F(cid:9)िसपल ऑ3फसर) को इस Cप म) वग(cid:30)कृत 3कया गया हो ।”
(II) अनुसूची II म),
(क) शIद(cid:21) “(cid:9)धान अिधकारी” के प0ात ् और शIद(cid:21) “और मूल (cid:9)बंध 4ि(cid:19)य(cid:21)” से पूव(cid:8), शIद तथा िच.न “, िनदेशक
(डायरेDटर), सं(cid:9)वत(cid:8)क ((cid:9)ोमोटर)” अंतः/थािपत 3कए जाएँगे;
2629 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4]
(ख) खंड (ग) म), िच.न “।” के िलए, िच.न “;” (cid:9)ित/थािपत हो जाएगा;
(ग) खंड (ग) के प0ात,् िन िलिखत खंड अंतः/थािपत 3कया जाएगा, अथा(cid:8)त,्-
“(घ) इरादतन चूककता(cid:8) के Cप म) वग(cid:30)कृत न होना ।”
यू.के. िस>हा, अ(cid:28)यJ
[िवKापन-III/4/असा./111(69जेड बी) ]
पपपपाााादददद (cid:15)(cid:15)(cid:15)(cid:15)टटटट(cid:17)(cid:17)(cid:17)(cid:17)पपपपणणणण ::::
1. भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) (म(cid:28)यवत(cid:30)) िविनयम, 2008, मूल िविनयम, अिधसूचना सं. एलएडी-
एनआरओ/जीएन/2008/11/126538 8ारा 26 मई, 2008 को भारत के राजप(, भाग III, खLड 4 म) (cid:9)कािशत (cid:23)ए थे ।
2. भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) (म(cid:28)यवत(cid:30)) िविनयम, 2008 तMप0ात् :-
(क) 11 अग/त, 2008 को भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) (/टॉक दलाल और उप-दलाल) (संशोधन) िविनयम,
2008, अिधसूचना सं. एलएडी-एनआरओ/जीएन/2008/20/134766, 8ारा
(ख) 14 जुलाई, 2009 को भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) (म(cid:28)यवत(cid:30)) (संशोधन) िविनयम, 2009, अिधसूचना सं.
एल.ए.डी.-एन.आर.ओ./जी.एन./2009-10/12/169546, 8ारा
(ग) 7 जनवरी, 2014 को भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) [िवदेशी पोटफ(cid:8) ोिलयो िविनधानकता (cid:8)(िनवशे क)] िविनयम,
2014, अिधसूचना सं. एल.ए.डी.एन.आर.ओ./जी.एन./2013-14/36/12, 8ारा संशोिधत (cid:23)ए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 10th May, 2016
SECURITIES AND EXCHANGE BOARD OF INDIA (INTERMEDIARIES) (AMENDMENT)
REGULATIONS, 2016
No. SEBI/LAD-NRO/GN/2016-17/006 .─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, 2016.
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: -
(I) In regulation 2, in sub-regulation (1),-
(1) in clause (m), for the symbol “.”, the symbol “;” shall be substituted;
(2) after clause (m), the following clause shall be inserted namely, -
“(n) "wilful defaulter" means any person who is categorized as a wilful defaulter by any bank or
financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters
issued by the Reserve Bank of India and includes any person whose director, promoter or
principal officer is categorized as such."¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(II) In Schedule II,
(a) after the words “principal officer” and before the words “and the key management persons”, the
words and symbol “the director, the promoter” shall be inserted;
(b) in clause (c), for the symbol “.”, the symbol “;” shall be substituted;
(c) after clause (c), the following clause shall be inserted namely,-
"(d) absence of categorization as a wilful defaulter."
U.K. SINHA, CHAIRMAN
[ADVT.-III/4/Exty.111(69 ZB)]
Footnote:
1. The principal regulations, 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 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 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 Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014,
vide notification No. LAD-NRO/GN/2013-14/36/12.
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and Published by the Controller of Publications, Delhi-110054.