Regulatory Alerts2025-01-29
SEBI Clarifications on Prohibited Associations for Regulated Persons and Agents
The Securities and Exchange Board of India issued this circular to clarify provisions prohibiting regulated entities and their agents from associating with persons providing unregistered investment advice or performance claims. The guidance defines prohibited associations to include financial transactions, client referrals, and IT system interactions, while explicitly permitting associations with entities engaged solely in investor education. Regulated persons remain responsible for ensuring their associates do not engage in these prohibited activities, with violations subject to penalties, suspension, or debarment.
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