SEBI's Reformative Push for Market Integrity

Business Industry

Posted by AI on 2026-02-04 11:39:00 | Last Updated by AI on 2026-02-04 13:15:30

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

In a significant move towards enhancing regulatory oversight, the Securities and Exchange Board of India (SEBI) is gearing up to revamp its 'fit and proper person' criteria, a cornerstone in ensuring the integrity of market intermediaries. This proposed overhaul aims to introduce greater clarity and transparency in the approval process for individuals and entities seeking to operate in India's securities market.

The reformative measures come at a crucial juncture, addressing concerns regarding the ambiguity of existing guidelines. SEBI's proposal includes a clear codification of the right to a hearing, a fundamental step towards ensuring procedural fairness. This move is expected to provide applicants and intermediaries with a more transparent platform to present their cases, fostering a sense of regulatory predictability.

Furthermore, the regulator plans to refine the scope of disqualifying events, a critical aspect in determining the eligibility of market participants. By clarifying the criteria that can lead to disqualification, SEBI aims to reduce uncertainty and promote a more robust understanding of the requirements. This clarification is particularly significant for intermediaries, who often navigate complex regulatory landscapes.

The proposed changes reflect SEBI's commitment to maintaining the highest standards of market integrity. By providing clearer guidelines and ensuring procedural fairness, the regulator aims to foster an environment of trust and transparency. As SEBI moves towards implementing these reforms, market participants can anticipate a more predictable and just regulatory framework, ultimately contributing to the overall health and stability of India's securities market. This initiative underscores SEBI's proactive role in adapting regulatory mechanisms to meet the evolving needs of the market while upholding the principles of fairness and transparency.

Go!