Securities and Exchange Board of India (Intermediaries) (Third Amendment) Regulations, 2021

6646 GI/2021 (1) रजजस्ट्री सं. डी.एल.- 33004/99 REGD. No. D. L.-33004/99 xxxGIDHxxx xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार से प्रकाजित PUBLISHED BY AUTHORITY भारतीय प्रजतभूजत और जिजनमय बोडड अजधसूचना मुम्बई, 17 निम् बर, 2021 भारतीय प्रजतभूजत और जिजनमय बोडड ( ) ( संिोधन) जिजनयम, 2021 सं. / - नआ ओ/ न/2021/59.—बोडड, भारतीय प्रजतभूजत और जिजनमय बोडड अजधजनयम, 1992 (1992 का 15) की धारा 30 क ह न क गई िजियों का प्रयोग करते हुए एतद्द्वारा भारतीय प्रजतभूजत और जिजनमय बोडड ( ) जिजनयम, 2008 का औ संिोधन करने के जलए जनम्नजलजखत जिजनयम बनाता है, अथाडत् :- 1. इन जिजनयमों को भारतीय प्रजतभूजत और जिजनमय बोडड ( ) ( संिोधन) जिजनयम, 2021 कहा जा सकेगा । 2. ये राजपत्र में इनके प्रकािन की तारीख को लागू होंगे । 3. भारतीय प्रजतभूजत और जिजनमय बोडड ( ) जिजनयम, 2008 में, - I. न II जनम्नजलजखत ह ग , अथाडत् – सं. 576] नई ददल्ली, बुधिार, निम् बर 17, 2021/कार्ततक 26, 1943 No. 576] NEW DELHI, WEDNESDAY, NOVEMBER 17, 2021/KARTIKA 26, 1943 सी.जी.-एम.एच.-अ.-17112021-231210 CG-MH-E-17112021-231210 2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] " न II (1) आ क ( ) उन न क क ग , आ क ग ह औ नक जिजनयमों (रे लेिन) क ग ह , न ह : (क) ह न ( ) औ क क ह औ ह ; औ (ख) उ क ह , - (न ) क न ह । (2) ‘उ उ ’ न न ख ग ह ग : (क) आ क ( ) पर; (ख) क ( ), न कों ग रों ( न ग न ), न न क (क ) औ - क यों (क न न) [ ह उ ह क न क ह ] पर; औ (ग) आ क ( ) , , न क ह (क ग ) खन कों ( ) यों पर आ क , , न खन यों पर: ह क ग ( न ) आ क क , उ क क खन क ( ह उ क न क ह ह न ह ह न ख ह न ख ह ) क यह जरूरी होगा दक ह ‘उ क उ ’ न करे । क – उ -ख क न , आ क क “ न क ह ” औ “ न ” क उस आ क ग न क न ग ग । (3) ह क न क उद्दे से क क ई ‘उ उ ’ ह नह , दकसी न क क ग ह क , स न न ह क इन क ह नह ह : (क) उस क न , उ क ई न , उ क न क आ , उ क ख, उ क न औ उ क ; (ख) ह जन नु दकसी भी क न हुआ ह : (i) क ख ह , 1973 (1974 क 2) क 154 क ह आ क क ( न क ) न क गई ह औ न ह ; (ii) क न ( ) क ख आ क आ - ( ) ख क ग ह औ न ह ; [भागIII—खण् ड 4] भारत का राजपत्र : असाधारण 3 (iii) क न क क ( अथॉररटी) न ( ) ऐसे व्यजि के जखलाफ ( ) क न न न ( ) क क ग ते हुए, क ते हुए करते हुए क ई आ क ग ह औ आ ग ह ; (iv) क ख क ह ( क ) क गई ह औ ह ह ; (v) दकसी न्यायालय रा क ख न क क क आ क क ई आ क ग ह ; (vi) क ख न ( ग ) क क ई क ह क गई ह न क क ई आ क ग ह ; (vii) क घ क ग ह औ न क ग ह ; (viii) सक्षम अजधकाररता िाले न्यायालय द्वारा यह जनष्कर्ड जनकाला गया हो दक व्यजि की ददमागी हालत ठीक नहीं है और िह जनष्कर्ड अब भी लागू हो; (ix) क न कक ( न क क क न / जिलफुल जडफॉल्टर) क ख ग ह ; (x) क ग आ क घ क ग ह ; (xi) ह न क क ई औ आ , - न क । (4) ह क क आ क न क क ह घ क क ह ‘उ उ ’ नह ह , उ आ ई गई क न उ आ क ग ह न क ख क क ( उ आ क क न क ग ह ) क क ( न) ह आ न क न क नह ह ग । (5) ( ) क क ह आ न ख क , आ क ख (2) उ ख क क ख न न क ह न क 11(4) 11ख(11 ) क ह क ह क क ई क ओ न ( क न ) क गई ह , क न क न ह क ग क आ न , न (न ) क न क ख क क क क ह ह न क ( ह ह ), नह क ग । (6) आ क क क ई ह ग ( ह / ) उ क क ई ख (3) क उ -ख (ख) क न ह , उ क क ह नह नक ग क आ क ‘उ उ ’ न ख नह उ , क क आ क ख (2) उ ख क ई उ उ ह न ह : ह क ख (2) क उ -ख (ख) उ ख क ई ‘उ उ ’ न क नह क , क क गह, क उ क ह 4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] न क ख न क , क ई न ह ग , औ न क न ‘उ उ ’ न क क ख क ह क क ग : ह औ क ख (2) क उ -ख (ग) उ ख क ई ‘उ उ ’ न क नह क , ह न क ग क क क क ग न क औ ह क , क उ क ह न क ख छह ह न क न (ह ग) , औ न क न ‘उ उ ’ न क क ख क ह क क ग । (7) ‘उ उ ’ न क ह आ न क ग ह ग औ क क हन क ग ह ग , औ ह न क ग क ख (2) क उ -ख (ख) उ -ख (ग) उ ख ‘उ उ ’ न क न क ।” अजय त्यागी, अध्यक्ष [जिज्ञापन-III/4/असा./440/2021-22] पाद रटप्पण : 1. भारतीय प्रजतभूजत और जिजनमय बोडड ( ) जिजनयम, 2008, न सं. एलएडी- एनआरओ/जीएन/2008/11/126538 26 ई, 2008 क भारत के राजपत्र, ग III, ख 4 में प्रकाजित हुए थे । 2. भारतीय प्रजतभूजत और जिजनमय बोडड ( ) जिजनयम, 2008 तत्पश्चात् :- क) 11 ग , 2008 क भारतीय प्रजतभूजत और जिजनमय बोडड ( क और उ - ) ( न) जिजनयम, 2008, न सं. एलएडी-एनआरओ/जीएन/2008/20/134766, द्वारा ख) 14 ई, 2009 क भारतीय प्रजतभूजत और जिजनमय बोडड ( ) ( न) जिजनयम, 2009, न सं. एल.ए.डी.-एन.आर.ओ./जी.एन./2009-10/12/169546, द्वारा ग) 7 न , 2014 क भारतीय प्रजतभूजत और जिजनमय बोडड [ न नक ( न क)] जिजनयम, 2014, न सं. एल.ए.डी.एन.आर.ओ./जी.एन./2013-14/36/12, द्वारा घ) 25 मई, 2016 क भारतीय प्रजतभूजत और जिजनमय बोडड ( ) ( न) जिजनयम, 2016, न सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/006, द्वारा ङ) 21 निम्बर, 2017 क भारतीय प्रजतभूजत और जिजनमय बोडड ( ) ( न) जिजनयम, 2017, न सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2017-18/021, द्वारा च) 17 अप्रैल, 2020 को भारतीय प्रजतभूजत और जिजनमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधन) जिजनयम, 2020, न सं. सेबी/एल.ए.डी.-एनआरओ/जीएन/2020/10, द्वारा छ) 21 न , 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड ( ) (संिोधन) जिजनयम, 2021, न सं. सेबी/एलएडी-एनआरओ/जीएन/2021/07, द्वारा ज) 5 ई, 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड ( ) ( संिोधन) जिजनयम, 2021, न सं. सेबी/एलएडी-एनआरओ/जीएन/2021/20, द्वारा झ) 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधन) जिजनयम, 2021, न सं. सेबी/एलएडी-एनआरओ/जीएन/2021/30, द्वारा संिोजधत हुए थे । [भागIII—खण् ड 4] भारत का राजपत्र : असाधारण 5 SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 17th November, 2021 SECURITIES AND EXCHANGE BOARD OF INDIA (INTERMEDIARIES) (THIRD AMENDMENT) REGULATIONS, 2021 No. SEBI/LAD-NRO/GN/2021/59.—In exercise of the powers conferred under Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Intermediaries) Regulations, 2008, namely: – 1. These regulations may be called the Securities and Exchange Board of India (Intermediaries) (Third Amendment) Regulations, 2021. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Intermediaries) Regulations, 2008, – I. Schedule II, shall be substituted by the following, namely - ―Schedule II (1) The applicant or intermediary shall meet the criteria, as provided in the respective regulations applicable to such an applicant or intermediary including: (a) the competence and capability in terms of infrastructure and manpower requirements; and (b) the financial soundness, which includes meeting the net worth requirements. (2) The ‗fit and proper person‘ criteria shall apply to the following persons: (a) the applicant or the intermediary; (b) the principal officer, the directors or managing partners, the compliance officer and the key management persons by whatever name called; and (c) the promoters or persons holding controlling interest or persons exercising control over the applicant or intermediary, directly or indirectly: Provided that in case of an unlisted applicant or intermediary, any person holding twenty percent or more voting rights, irrespective of whether they hold controlling interest or exercise control, shall be required to fulfill the ‗fit and proper person‘ criteria. Explanation– For the purpose of this sub-clause, the expressions ―controlling interest‖ and ―control‖ in case of an applicant or intermediary, shall be construed with reference to the respective regulations applicable to the applicant or intermediary. (3) For the purpose of determining as to whether any person is a ‗fit and proper person‘, the Board may take into account any criteria as it deems fit, including but not limited to the following: (a) integrity, honesty, ethical behaviour, reputation, fairness and character of the person; (b) the person not incurring any of the following disqualifications: (i) criminal complaint or information under section 154 of the Code of Criminal Procedure, 1973 (2 of 1974) has been filed against such person by the Board and which is pending; (ii) charge sheet has been filed against such person by any enforcement agency in matters concerning economic offences and is pending; (iii) an order of restraint, prohibition or debarment has been passed against such person by the Board or any other regulatory authority or enforcement agency in any matter concerning securities laws or financial markets and such order is in force; (iv) recovery proceedings have been initiated by the Board against such person and are pending; (v) an order of conviction has been passed against such person by a court for any offence involving moral turpitude; 6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] (vi) any winding up proceedings have been initiated or an order for winding up has been passed against such person; (vii) such person has been declared insolvent and not discharged; (viii) such person has been found to be of unsound mind by a court of competent jurisdiction and the finding is in force; (ix) such person has been categorized as a wilful defaulter; (x) such person has been declared a fugitive economic offender; or (xi) any other disqualification as may be specified by the Board from time to time. (4) Where any person has been declared as not ‗fit and proper person‘ by an order of the Board, such a person shall not be eligible to apply for any registration during the period provided in the said order or for a period of five years from the date of effect of the order, if no such period is specified in the order. (5) At the time of filing of an application for registration as an intermediary, if any notice to show cause has been issued for proceedings under these regulations or under section 11(4) or section 11B of the Act against the applicant or any other person referred in clause (2), then such an application shall not be considered for grant of registration for a period of one year from the date of issuance of such notice or until the conclusion of the proceedings, whichever is earlier. (6) Any disqualification of an associate or group entity of the applicant or intermediary of the nature as referred in sub-clause (b) of clause (3), shall not have any bearing on the ‗fit and proper person‘ criteria of the applicant or intermediary unless the applicant or intermediary or any other person referred in clause (2), is also found to incur the same disqualification in the said matter: Provided that if any person as referred in sub-clause (b) of clause (2) fails to satisfy the ‗fit and proper person‘ criteria, the intermediary shall replace such person within thirty days from the date of such disqualification failing which the ‗fit and proper person‘ criteria may be invoked against the intermediary: Provided further that if any person as referred in sub-clause (c) of clause (2) fails to satisfy the ‗fit and proper person‘ criteria, the intermediary shall ensure that such person does not exercise any voting rights and that such person divests their holding within six months from the date of such disqualification failing which the ‗fit and proper person‘ criteria may be invoked against such intermediary. (7) The ‗fit and proper person‘ criteria shall be applicable at the time of application of registration and during the continuity of registration and the intermediary shall ensure that the persons as referred in sub-clauses (b) and (c) of clause (2) comply with the ‗fit and proper person‘ criteria. ” AJAY TYAGI, Chairman [ADVT.-III/4/Exty./440/2021-22] Footnote: 1. The Securities and Exchange Board of India (Intermediaries) Regulations, 2008 was published in the Gazette of India, Part III Section 4 on May 26, 2008 vide notification No. LAD-NRO/GN/2008/11/126538. 2. The Securities and Exchange Board of India (Intermediaries) Regulations, 2008 was subsequently amended on:- a) August 11, 2008 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2008, vide notification No. LAD-NRO/GN/2008/20/134766. b) July 14, 2009 by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2009, vide notification no. LAD-NRO/GN/2009-10/12/169546. c) January 7, 2014 by the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, vide notification no. LAD-NRO/GN/2013-14/36/12. d) May 25, 2016 by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2016, vide notification no. SEBI/LAD-NRO/GN/2016-17/006. e) November 21, 2017, by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2017, vide notification no. SEBI/LAD-NRO/GN/2017-18/021. f) April 17, 2020, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020, vide notification no. SEBI/LAD-NRO/GN/2020/10. [भागIII—खण् ड 4] भारत का राजपत्र : असाधारण 7 g) January 21, 2021, by the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2021, vide notification no. SEBI/LAD-NRO/GN/2021/07. h) May 5, 2021, by the Securities and Exchange Board of India (Intermediaries) (Second Amendment) Regulations, 2021, vide notification no. SEBI/LAD-NRO/GN/2021/20. i) August 3, 2021, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021, vide notification no. SEBI/LAD-NRO/GN/2021/30. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. SURENDER MAHADASAM Digitally signed by SURENDER MAHADASAM Date: 2021.11.17 16:26:31 +05'30'