SEBI Amends Regulation 30A: New Summary Proceedings for Intermediaries Violating Securities Laws, Effective 2024.
The Securities and Exchange Board of India (SEBI) has issued the Securities and Exchange Board of India (Intermediaries) (Second Amendment) Regulations, 2024, effective upon publication in the Official Gazette. This amendment replaces regulation 30A with new provisions for summary proceedings against intermediaries like stock brokers, clearing members, and depository participants who have been expelled, failed to pay fees, or violated securities laws. The competent authority will issue notices, and intermediaries must respond within specified timeframes. The authority can cancel or suspend registration without personal hearings and impose conditions to protect investors. The order will be communicated to relevant parties and uploaded online.