Sebi said in a statement that the regulations put in place a comprehensive regulation which will apply to all intermediaries. The common requirements like the grant of registration, general obligations, common code of conduct, common procedure for action in case of default and miscellaneous provisions have been provided in the approved intermediaries regulations.
The regulator has made the registration process simple. An applicant may file application in the prescribed format along with additional information as required under the relevant regulations along with the requisite fees. The existing intermediaries may, within the prescribed time, file the disclosure in the specified Form. The disclosures shall be made public by uploading the information on the website specified by Sebi. The information of commercial confidence and private information furnished to Sebi shall be treated confidential. In the event intermediary wishes to operate in a capacity as an intermediary in a new category, they may only file the additional shortened forms disclosing the specific requirements of the new category as per the relevant regulations.
Sebi said that the registration granted to the intermediaries has been made permanent if the compliance of the Sebi Act, regulations, updation of relevant disclosures and payment of fees is followed.
Sebi said that the procedure for action in case of default and manner of suspension or cancellation of certificate has been simplified to shorten the time usually faced by the parties without compromising with the right of reasonable opportunity to be heard. Surrender of certificate has been enabled without going through lengthy procedures, the regulator said. In another development, Sebi has notified Sebi (public offer and listing of securitised debt instruments) regulations, 2008. The amendment to Securities Contracts (Regulation) Act, 1956 (SCRA) enabled Sebi to provide for disclosure based regulation for public issue of or listing of securitised debt instruments on the recognised stock exchanges with a view to develop market for securitised debt instruments.
It may be mentioned here that accordingly Sebi has notified Sebi (public offer and listing of securitised debt instruments) Regulations, 2008 on May 26, 2008 taking into account the market needs, cost of the transactions, competition policy, the professional expertise of credit rating agencies, disclosures and obligations of the parties involved in the transaction and the interest of investors in the said instruments.