Board gets more teeth: SEBI widens ambit to proceed against intermediaries

The Securities and Exchange Board of India (SEBI) has amended the SEBI (Intermediaries) Regulations, 2008 and replaced the words ‘designated member’ with ‘competent authority’. In essence, SEBI has relaxed the process for conducting proceedings against intermediaries. As against whole time members only, now chief general managers, executive directors and WTMs are empowered to pass an order of cancellation or suspension of registration.

Against this backdrop, Abhiraj Arora, Associate Partner at Economic Laws Practice (ELP) has been quoted by Financial Express (India) in their article titled ‘Board gets more teeth: SEBI widens ambit to proceed against intermediaries’. Abhiraj says, “The adjudication process has often been plagued with delays. And one of the primary reasons for that is that only WTMs were empowered to adjudicate matters under the SEBI act. Through this latest amendment, the power to adjudicate has now been delegated to an officer who is not below the rank of Chief General Manager. It is expected that with this broadened pool of adjudicators, the quality of due process and natural justice will continue to be upheld.”

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