SEBI’s new framework for intermediaries

Sebi has put in place a revised framework for seeking its prior approval for changes in control of stock brokers, depository participants and other market intermediaries.

The framework will be applicable for stock broker/clearing member, depository participant, investment adviser, research analyst or research entity, registrar to an issue and share transfer agent and KYC Registration Agencies (KRAs).

In a circular, the regulator said the changes have been made to streamline the process of providing approval to the proposed change in control of the entities.

Under the provisions, which will be effective from December 1, an intermediary should apply online for Sebi’s prior approval and along with the application, the entity concerned has to submit various details, including the current and proposed shareholding pattern of the applicant.

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