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ARTICLE · 14 MARCH 2023

Correction In Order: A Case For Relooking At Some Sebi Regulations

The securities markets are ever-evolving and require the regulator to always be on its feet, revising and updating its regulations and practices with the changing environment.

IndiaCorporate/Commercial Law

The securities markets are ever-evolving and require the regulator to always be on its feet, revising and updating its regulations and practices with the changing environment. Thus, the regulator ought to rethink its policies in certain areas.

Recently, various guidance letters and directions issued by Sebi have created confusion over what services an entity may provide in the capacity of a registered intermediary. In light of the recent show-cause notice, and settlement order passed by Sebi in the Amit Jeswani matter, the scope of services that may be provided by a Sebi-registered research analyst (RA) have come under reconsideration, wherein Sebi alleged that providing model portfolio services to its clients is beyond the scope of an RA as defined under the Sebi (Research Analysts) Regulations, 2014, as it does not give investors a choice to invest in stocks other than those mentioned in the model portfolio. These findings question the present market practice based

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The contents of this article should not be construed as legal opinion. Recipients should take independent legal advice before acting on any views expressed herein. The comments in the article are as of the laws prevalent on the date the article was originally published. The views stated in the article are not binding on any authority or court, and so, no assurance is given that a position contrary to that expressed herein will not be asserted by any regulatory authority/courts. For any further queries or follow up, please contact Finsec Law Advisors.

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