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Sebi seeks public comments on draft circular to regulate association with prohibited entities

Economic TimesEconomic Times · 16d
Sebi seeks public comments on draft circular to regulate association with prohibited entities

The Securities and Exchange Board of India (SEBI) has released a draft circular to regulate associations between market intermediaries, market infrastructure institutions (MIIs), and entities involved in prohibited activities. This comes after amendments were made to SEBI's rules earlier this year to curb unregistered entities providing investment advice and unauthorized claims of returns. The circular clarifies that intermediaries and MIIs are prohibited from associating with entities offering unregistered securities advice or making unauthorized claims. It also outlines the consequences of violations and requires regulated entities to terminate contracts with prohibited entities by January 2025. Stakeholders have until December 27 to provide feedback on the draft.

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