Mar 23, 2011

SEBI Directions to Registered Market Intermediaries

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SEBI Directions to Registered Market Intermediaries

Capital Market Regulator and Watchdog SEBI vide its circular no. Cir/ ISD/1/2011 dated 23.03.2011 has come out with directions for all Registered Market Intermediaries to strengthen their Internal Code of Conduct and to have proper check and record of blogs/chat forums/ e-mail etc. being circulated by them and their employees.

In view of the direction made in the circular, following changes may be included in the Internal Code of Conduct of the Intermediaries:

  • Restriction on circulation of rumours and unverified information obtained from client, industry, any trade or any other sources without verification.
  • Restricting or denying the employees access to Blogs/Chat forums/Messenger sites etc.
  • Logs for any usage of such Blogs/Chat forums/Messenger sites (called by any nomenclature) to be treated as records and maintained for the minimum period as per governing provisions.
  • Enhanced responsibility of the compliance officer. Employees not to forward official mail/personal mail/blog or in any other manner, without the approval of the Intermediary’s Compliance Officer.
  • If an employee fails to adhere to the changes, he/she shall be liable for the actions under appropriate provisions of SEBI Act/Rules/Regulations etc.

The SEBI Circular bearing no. Cir/ ISD/1/2011 dated 23.03.2011 is attached herewith. To download, please click here.


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