Not obligatory for platforms to be registered with SEBI; board clarifies on specified digital platforms

Market regulator Securities and Exchange Board of India (SEBI) has clarified that integer platforms utilized by regulated entities to subordinate with 3rd parties are not required to beryllium registered with SEBI. SEBI clarified, “It's not obligatory for immoderate integer level to beryllium registered arsenic Specified Digital Platform (SDP) and determination is nary regularisation of these integer platforms by SEBI”. Digital platforms see Meta, Google, and others.
 
SEBI clarification further added that curative actions presently being carried retired by immoderate integer platforms are successful accordance with law. Preventive steps are contemplated for immoderate integer level to get notified arsenic SDP is not mandatory and it is for the level to opt oregon not opt for getting notified arsenic SDP.
 
Seeing immense jumps successful complaints against unregulated entities, SEBI tweaked the regularisation successful August this year, which mandated SEBI-registered entities not to subordinate straight oregon indirectly with unregistered entities, who supply immoderate proposal oregon proposal astir securities, unless the idiosyncratic is registered with SEBI. Similarly regulated entities are prohibited to subordinate with immoderate idiosyncratic who makes immoderate claim, of returns oregon show expressly oregon impliedly, successful respect of oregon related to a information oregon securities, unless the idiosyncratic has been permitted by the Board to marque specified a claim.
 
SEBI said the intent of this proviso successful the aforesaid regulations is to springiness assurance to regulated entities that if the regulated entity is associated with an SDP, it is automatically assured of not being held arsenic violating the provisions of regulations. Hence, successful lawsuit of immoderate usurpation of Regulation 16A of Intermediaries Regulations, Regulation 44B of SECC Regulations, and Regulation 82B of DP Regulations, it shall beryllium a valid defence for the regulated entity that it has associated with a integer level which is an SDP.
 
The clarification noted is that it is not expected that a regulated entity shall subordinate lone with/through an SDP. It tin besides subordinate with/through a integer level which is not an SDP. However, successful that case, it has the work to guarantee that the provisions of Regulation 16A of Intermediaries Regulations, Regulation 44B of SECC Regulations, and Regulation 82B of DP Regulations are complied with.
 
SEBI issued the clarification after, assorted queries from the media and besides concerns raised by immoderate large integer media companies and manufacture associations.