Compliance officer requirement: intermediaries must monitor regulatory compliance and report material non-compliance in writing to their board. An intermediary must appoint a compliance officer to monitor compliance with the Act, rules, regulations, notifications, guidelines, circulars and orders of the Board or Central Government, and the rules, regulations and bye-laws of concerned stock exchanges or self regulatory organizations; the intermediary need not appoint one if it is not carrying on the activity. The compliance officer must report in writing any material non-compliance to the intermediary or its board of directors.