The Securities and Exchange Board of India (“SEBI”) vide circular no. SEBI/HO/IMD/DF1/CIR/P/2020/148 dated August 6, 2020 (“Circular”) has decided to recognise a wholly owned subsidiary of the stock exchange (“SE Subsidiary”) to administer and supervise the investment advisers (“IAs”) registered with SEBI.
Criteria for grant of recognition:
The recognition of SE Subsidiaries shall be based on the following eligibility criteria of its parent entity, i.e., the stock exchange:
Setting up of requisite systems by stock exchange:
Responsibilities of the SE Subsidiary:
The stock exchanges fulfilling the abovementioned eligibility criteria, can submit a detailed proposal, incorporating requisite systems and mechanism to discharge responsibilities as aforesaid, to SEBI within 30 (thirty) days from the date of the Circular.
This update has been contributed by Aastha (Partner) and Kartik Jigyasi (Associate).
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