SEBI Revises Fit & Proper Criteria Under Intermediaries Regulations

The Securities and Exchange Board of India (SEBI) has notified amendments to the SEBI (Intermediaries) Regulations, 2008, introducing key clarifications and strengthening compliance requirements.

1. Clarification on Interpretation of “Days”

• A new clause (ea) in Regulation 2 has been inserted
• It clarifies that the term “days” shall mean calendar days

This removes ambiguity in timelines prescribed under the regulations.

2. Changes in Fit and Proper Person Criteria

Amendments have been made to Schedule II, which deals with the ‘fit and proper person’ criteria, including:

• Revision of disqualification events
• Updates to ensure:

1. 1. Better screening of intermediaries
   2. Enhanced regulatory integrity and governance

3. Introduction of Disclosure Requirement (Clause 3A)

• A new Clause 3A has been introduced
• It mandates:

1. 1. Disclosure of specified events
   2. Within prescribed timelines

This strengthens transparency and ongoing compliance monitoring.

4. Effective Date

• The amendments are effective immediately

5. Conclusion

These changes reinforce SEBI’s focus on clarity, transparency, and stricter governance standards, ensuring that intermediaries operate within a robust and accountable regulatory framework.