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

Securities and Exchange Board of India (Intermediaries) (Second Amendment) Regulations, 2025

20-Mar-2025 | F. No. SEBI/LAD-NRO/GN/2025/237

SEBI has issued Securities and Exchange Board of India (Intermediaries) (Second Amendment) Regulations, 2025, effective from 21st March 2025.

By virtue of this notification, a new Chapter - IIIC is introduced regarding the Verification of Past Risk and Return Metrics.

Regulation 16D is introduced which specifies the applicability of the above-mentioned chapter, the provisions are applicable to - Investment Advisers, Research Analysts, Algo
Providers empaneled with a recognised stock exchange, and intermediaries permitted by the Board to provide the services of Investment Advisers, Research Analysts and Algorithmic Trading.

Further, Regulation 16E is introduced regarding Verification of Risk-Return Metrics, which specifies that the above-mentioned persons are permitted to make claim of returns or performance in the form of risk and return metrics, which have been verified by a recognised credit rating agency carrying out the activity of a Past Risk and Return Verification Agency. The claim shall be made in such form as may be specified by the Board.

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