Associate definition for stock brokers clarifies control and substantial shareholding thresholds, and empowers exchanges to act against associates. SEBI defines 'associate' of a stock broker to include persons who directly or indirectly exercise control over the broker or are controlled by the broker, persons holding a substantial shareholding in the broker, and persons whose director or partner is also a director or partner of the broker; the term 'control' is to be read as per clause (c) of Regulation 2 of the relevant substantial acquisition and takeovers regulation, and member exchanges are to decide any action against such associates after examining relevant facts.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Associate definition for stock brokers clarifies control and substantial shareholding thresholds, and empowers exchanges to act against associates.
SEBI defines 'associate' of a stock broker to include persons who directly or indirectly exercise control over the broker or are controlled by the broker, persons holding a substantial shareholding in the broker, and persons whose director or partner is also a director or partner of the broker; the term 'control' is to be read as per clause (c) of Regulation 2 of the relevant substantial acquisition and takeovers regulation, and member exchanges are to decide any action against such associates after examining relevant facts.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
