SEBI (Intermediaries) Amendment
The SEBI (Intermediaries) Regulations represent SEBI's efforts to consolidate registration, conduct, compliance and disciplinary norms for various categories of capital market intermediaries into a more unified framework, replacing the earlier patchwork of separate registration and code of conduct rules.
Historically, SEBI regulated different categories of intermediaries — stockbrokers, sub-brokers, portfolio managers, investment advisers, research analysts, merchant bankers, registrars to an issue, credit rating agencies and custodians — each under its own separate regulation. While thematic or functional regulations continue to exist, SEBI has progressively moved toward harmonised provisions on common elements such as registration requirements, KYC norms, maintenance of records, grievance redressal obligations and penalty frameworks.
A key development has been SEBI's shift toward a technology-enabled, digital compliance infrastructure for intermediaries. The SEBI Intermediary Portal (SI Portal) centralises registration, renewal, modification and surrender of certificates of registration online. Intermediaries are now required to file periodic compliance reports, submit annual compliance certificates and report material changes (changes in control, key personnel, financials) through digital channels rather than physical submissions.
Conduct obligations have been made more prescriptive across intermediary categories. Best execution standards for brokers, conflict of interest disclosure requirements for advisers, fair and transparent pricing by portfolio managers, and non-discretionary communication norms for research analysts have all been tightened through successive amendments. The concept of a Principal Officer and Compliance Officer with defined responsibilities and personal accountability for regulatory compliance has become standard across intermediary types.
Digital compliance extends to client onboarding. SEBI and AMFI have streamlined video-based KYC, eSign-based documentation and digital consent mechanisms, reducing friction while maintaining regulatory standards. Central KYC (CKYC) records reduce the need for duplicate KYC across intermediaries.
For investors, the strengthened intermediary framework provides better conduct protections. An awareness of the regulatory requirements applicable to advisers, brokers and portfolio managers is useful when evaluating the quality and trustworthiness of financial service providers.