THE GAZETTE OF INDIA

1 · [Provided further that the provisions of these regulations shall come into force in relation to different classes of intermediaries on such dates as the Board may by notification in the Official Gazette appoint.]

1 · Inserted by the SEBI (Self Regulatory Organizations) (Amendment) Regulations, 2013 w.e.f. 07.01.2013

2 · [(ea) "distributor" means distributor as defined in clause (g) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007;]

3 · [(h) "intermediary" means intermediary as defined in clause (g) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008;]

4 · [(ha) "issuer" means issuer as defined in clause (i) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007;]

2 · Inserted by the SEBI (Self Regulatory Organizations) (Amendment) Regulations, 2013 w.e.f. 07.01.2013 .

3 · Substituted by the SEBI (Self Regulatory Organizations) (Amendment) Regulations, 2013 w.e.f. 07.01.2013. Prior to its substitution, clause (h) read as under:

4 · Inserted by the SEBI (Self Regulatory Organizations) (Amendment) Regulations, 2013 w.e.f. 07.01.2013

3 · (1) Any group or association of intermediaries, which is desirous of being recognized as a Self Regulatory Organization, may form a company registered under section 25 of the Companies Act, 1956 and such company may make an application to the Board for grant of certificate of recognition as a Self Regulatory Organization:

5 · [Provided that for the purpose of this sub-regulation a distributor shall be deemed to be an intermediary]:

6 · [Provided further that the Board may, in case of distributors engaged by asset management companies of mutual funds, grant certificate of recognition to only one group or association making an application under this regulation.]

5 · Inserted by the SEBI (Self Regulatory Organizations) (Amendment) Regulations, 2013 w.e.f. 07.01.2013

6 · Inserted by the SEBI (Self Regulatory Organizations) (Second Amendment) Regulations, 2013 w.e.f. 18.11.2013

4 · The Board shall not consider an application for grant of a certificate under regulation 3 unless the applicant satisfies the following conditions, namely:-

7 · [(i) the applicant is a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008;]

8 · [Grant of in-principle approval.

4A · Where the applicant is not in compliance with the provisions of clauses (c), (d) or (h) of regulation 4, on the date of submission of the application under regulation 3, the Board may grant an in-principle approval to the applicant, which shall be valid for a period of one hundred and eighty days, within which the applicant shall ensure compliance with all provisions of regulation 4:

7 · Substituted by the SEBI (Self Regulatory Organisations) (Second Amendment) Regulations, 2013 w.e.f. 18.11.2013. Prior to its substitution, clause (i) read as under:

8 · Inserted by the SEBI (Self Regulatory Organizations) (Second Amendment) Regulations, 2013 w.e.f. 18.11.2013.

5 · (1) If the Board is satisfied, after making such inquiry as may be necessary in this behalf and after obtaining such further information, if any, as it may require, -

6 · 9 [Subject to the provisions of regulation 4A, any application] for a certificate, which is not complete in all respects or does not conform to the requirements of these regulations and particularly regulations 3, 4 and 5 or instructions specified in Form A shall be rejected by the Board:

7 · (1)The Board may require the applicant to furnish such further information or clarification as it may consider necessary for the purpose of processing of the application.

8 · (1) The certificate granted under regulation 5 shall be, subject to the following conditions, namely: -

9 · Substituted for the words "Any application" by the SEBI (Self Regulatory Organizations) (Second Amendment) Regulations, 2013 w.e.f.18.11.2013

9 · (1) Any Self Regulatory Organization desirous of obtaining renewal of the recognition granted to it, shall make to the Board an application for the renewal of the certificate of recognition in Form A of the First Schedule.

10 · (1) If, after considering an application made under regulation 3 or regulation 9, as the case may be, the Board is of the opinion that a certificate should not be granted or renewed, it may, after giving the applicant a reasonable opportunity of being heard, reject the application within a period of thirty days of receipt of such application complete in all respects or within thirty days of receipt of further information or clarification sought under regulation 7.

11 · (1) An applicant referred to in sub regulation (1) of regulation 3 whose application for the grant of a certificate has been rejected under sub-regulation (1) of regulation 10 shall not undertake any activity as Self Regulatory Organization. (2) A Self Regulatory Organization referred to in regulation 9 whose application for the renewal of certificate has been rejected by the Board shall on and from the date of the receipt of the communication from the Board under sub regulation (2) of regulation 10 cease to carry on any activity as Self Regulatory Organization. (3) If the Board is satisfied that it is in the interests of investors to do so, it may permit the Self Regulatory Organization referred to under sub-regulation (2) to complete the functions or obligations already initiated or undertaken by it during the pendency of the application or during the period of validity of the certificate. (4) The Board may in order to protect the interests of investors, issue directions with regard to the transfer of records, documents or reports relating to the functions of the Self Regulatory Organization, whose application for the grant or renewal of a certificate has been rejected. (5) The Board may, in order to protect the interests of investors, appoint any person to take regulation (4) and for this purpose also determine the terms and conditions of such charge of the records, documents or reports relating to the organization referred to in subappointment.

12 · (1) The Articles of Association of a Self Regulatory Organization shall provide for the following: -

13 · (1) After commencement of these regulations, any application for registration or renewal of registration as an intermediary with the Board under the respective regulations applicable to such intermediaries, shall in case of any applicant who is a member of a Self Regulatory Organization or who ought to be a member of a Self Regulatory Organization, be made only through the Self Regulatory Organization of which he is a member, in the specified manner.

14 · (1) A Self Regulatory Organization shall always abide by the directions of the Board.

15 · (1) A Self Regulatory Organization may, subject to the previous approval of the Board, make governing norms and articles consistent with the provisions of the Act and these regulations.

16 · (1) Where it appears to the Board so to do, it may appoint one or more persons as inspecting authority to undertake inspection of the books of accounts, other records and documents of the Self Regulatory Organization for any of the purposes specified in subregulation (2).

17 · (1) Before undertaking any inspection under regulation 16, the Board shall give a reasonable notice to the Self Regulatory Organization for that purpose.

21 · (1) Every Self Regulatory Organization shall furnish to the Board such periodical returns relating to its affairs as may be specified.

22 · (1) After receiving the report of an enquiry made under regulation 21, the Board may take such action as it deems proper and, in particular, may direct Board of Directors of the Self Regulatory Organization to take such disciplinary action against the delinquent member, including expulsion, suspension or any other penalty of a like nature not involving the levy of monetary penalty, as may be specified by it and thereupon, notwithstanding anything to the contrary contained in the articles or governing norms of the Self Regulatory Organization concerned, the Board of Directors of the Self Regulatory Organization shall give effect to the directions of the Board and shall not in any manner commute, revoke or modify the action taken in pursuance of such directions, without the prior written approval of the Board.

23 · (1) If the Board is of the opinion that the recognition granted to a Self Regulatory Organization under the provisions of these Regulations should, in the interest of the trade or in the public interest, be withdrawn, it may serve a written notice in Form "C" on Board of Directors of the Self Regulatory Organization calling upon it to show cause as to why the recognition should not be withdrawn for the reasons stated in the notice.

5 · [The fees has been remitted through electronic payment mode as per details below] 11*** []

10 · Inserted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6.3.2017.

11 · Omitted the words " /Demand Draft No .... dated for Rs is attached " by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2023 .

12 · [The fees specified above shall be paid by way of direct credit into the bank account through NEFT/RTGS/IMPS or online payment using the SEBI Payment Gateway or any other mode as may be specified by the Board from time to time.]

12 · Substituted by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2023 .