Sebi plans to amend various norms governing entities undertaking third party assignment under the securities law.
The markets regulator will issue a consultation paper on the subject.
The proposal was cleared by the Sebi board at its meeting here today.
In a release, Sebi said fiduciaries in the securities market have a significant role to play in terms of credible reporting of disclosure, financial information and compliance with regulations.
Fiduciaries such as merchant bankers, credit rating agencies, custodians, debenture trustees and registrar to an issue are registered with Sebi.
However, many others, including chartered accountants, company secretaries, cost accountants and valuers, who take up assignments from issuers or market intermediaries are currently not registered with Sebi.
Against this backdrop, the Sebi board has approved issuance of consultation paper to amend various regulations in respect of entities that undertake third party fiduciary assignment under securities laws. This would cover assignments taken up for issuers, pooled investment vehicles, intermediaries and market infrastructure entities.
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"The absence of credible and reliable reporting of such information has the potential to adversely impact confidence in the securities markets and the financial system," the release said.
Besides, the board has also decided to do away with the category of sub-brokers as market intermediaries.
"No fresh registration shall be granted as sub-brokers.
"Registered sub-brokers shall migrate to authorised persons or trading members... sub-brokers who do not choose to migrate, shall be deemed to have surrendered their registration as sub-broker," the release said.
The regulator would provide a suitable time period to facilitate the transition.
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