Introduction: On April 26th, 2024, the Securities and Exchange Board of India (SEBI) issued a crucial notification regarding amendments to the Securities Contracts (Regulation) Act, 1956. This amendment primarily focuses on refining the regulatory framework concerning stock exchanges and clearing corporations.
Detailed Analysis: The amendment, officially titled “SECURITIES CONTRACTS (REGULATION) (STOCK EXCHANGES AND CLEARING CORPORATIONS) (AMENDMENT) REGULATIONS, 2024,” introduces Regulation 38A after Regulation 38 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018. This new regulation empowers recognized stock exchanges to administer and supervise specified intermediaries with prior approval from the SEBI board.
This move signifies a strategic shift in regulatory oversight, delegating certain responsibilities to recognized stock exchanges. By allowing them to oversee specified intermediaries, SEBI aims to enhance efficiency, transparency, and compliance within the securities market.
Conclusion: In conclusion, SEBI’s latest amendment marks a significant step towards refining the regulatory landscape governing stock exchanges and clearing corporations in India. By delegating certain administrative and supervisory functions to recognized stock exchanges, SEBI aims to streamline operations and ensure robust oversight of specified intermediaries. This development underscores SEBI’s commitment to fostering a fair, transparent, and efficient securities market ecosystem. Investors and stakeholders should stay abreast of these regulatory changes to navigate the evolving landscape effectively.
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SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 26th April, 2024
SECURITIES CONTRACTS (REGULATION) (STOCK EXCHANGES AND CLEARING CORPORATIONS) (AMENDMENT) REGULATIONS, 2024
No. SEBI/LAD-NRO/GN/2024/171.—In exercise of the powers conferred by sections 4 and 31 of the Securities Contracts (Regulation) Act, 1956, read with sections 11 and 30 of the Securities and Exchange Board of
India Act, 1992, the Board hereby makes the following regulations to further amend the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, namely, –
1. These regulations may be called the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2024.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, after regulation 38, the following regulation shall be inserted, namely,–
“Administration of specified intermediaries
38A. Notwithstanding anything contained in these regulations, with the approval of the Board, the activities of administration and supervision over specified intermediaries may be carried out by recognised stock exchange on such terms and conditions and to such an extent as may be specified.”
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./051/2024-25]
Footnote:
1. The Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 were published in the Gazette of India on 3rd October 2018 vide No. SEBI/LAD-NRO/GN/2018/41.
2. The Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 were subsequently amended on–
(a) 4th June, 2019, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/2019/21.
(b) 17th April, 2020, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020videNo. SEBI/LAD-NRO/GN/2020/10.
(c) 8th October, 2020, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/32.
(d) 23rd March, 2021, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/12.
(e) 13th August, 2021, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Second Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/44.
(f) 12th August 2022, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/93.
(g) 15th November, 2022, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Second Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/104.
(h0 28th February, 2023, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/124.
(i) 24th July, 2023, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Second Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/139.
(j) 22nd August, 2023, by the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Third Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/148.
