SEBI has issued Securities and Exchange Board of India (Intermediaries) Amendment Regulations, 2024 on August 29, 2024. General obligations of intermediaries as per regulations includes:
- An intermediary shall provide the Board with a certificate of its compliance officer on the 1st April of each year certifying.
- Each intermediary shall prominently display a photocopy of the certificate at all its offices including branch offices.
- The intermediary shall also prominently display the name and contact details of the compliance officer to whom complaint may be made in the event of any investor grievance.
- The intermediary shall maintain such books, accounts and records as specified in the relevant regulations.
- The intermediary shall make endeavours to redress investor grievances promptly but not later than forty-five days of receipt thereof and when called upon by the Board to do so it shall redress the grievances of investors within the time specified by the Board.
- The intermediary shall maintain records regarding investor grievances received by it and redressal of such grievances.
- The intermediary shall at the end of each quarter of a Financial Year ending on 31st March upload information about the number of investor grievances received, redressed and those remaining unresolved beyond three months of the receipt thereof by the intermediary on the website specified by the Board. Appointment of compliance officer.
- An intermediary shall appoint a compliance officer for monitoring the compliance by it of the requirements of the Act, rules, regulations, notifications, guidelines, circulars and orders made or issued by the Board or the Central Government, or the rules, regulations and bye-laws of the concerned stock exchanges, or the self regulatory organization, where applicable.
- The compliance officer shall report to the intermediary or its board of directors, in
writing, of any material non-compliance by the intermediary. - An intermediary, its directors, officers, employees or key management personnel shall not render, directly or indirectly, any investment advice about any security in the publicly accessible media, whether real-time or non-real-time, unless a disclosure of its interest, direct or indirect, including its long or short position in the said security has been made, while rendering such advice.
- If an intermediary’s directors, officers, employees or key management personnel are rendering such advice, the intermediary shall ensure that while rendering such advice he discloses his interest, the interest of his dependent family members and that of the employer including employer’s long or short position in the said security.
- An intermediary shall not make a recommendation to any client or investor who may be expected to rely thereon to acquire, dispose of or retain any securities unless he has reasonable grounds to believe that the recommendation is suitable.
- An intermediary and its directors, officers, employees and key management personnel shall continuously abide by the code of conduct specified in Schedule III.
