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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Securities and Exchange Board of India (Depositories and Participants) (Second Amendment) Regulations, 2023

22-Aug-2023 | SEBI/LAD-NRO/GN/2023/147

Securities and Exchange Board of India (SEBI) has issued the Securities and Exchange Board of India (Depositories and Participants) (Second Amendment) Regulations, 2023, effective from 22nd August 2023. The amendment aims to refine and enhance the existing provisions under the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018.

Key Highlights of the Amendment:

1. Regulation 23 - Requirement and Criteria of Fit and Proper:

a. The fit and proper person criteria will be applicable to the applicant, depository, its shareholders, directors, and key management personnel at all times.
b. The depository is responsible for ensuring that all its shareholders, directors, and key management personnel meet the fit and proper criteria consistently.
c. An applicant or depository will be considered a fit and proper person if they possess a general reputation and record of fairness and integrity, including financial integrity, good reputation and character, and honesty.
d. The person should not have incurred any disqualifications, including conviction for economic offences or securities law violations.

2. Regulation 35 - Amendment to Clause (d): Consideration of application for grant of certificate of registration

Within regulation 35, the amendment inserts the requirement that the applicant must be a fit and proper person under the Securities and Exchange Board of India (Intermediaries) Regulations, 2008.

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