 "SEBI")
The Securities and Exchange Board of India (Sebi) on Wednesday clarified that specified digital platforms (SDPs) are not required to register with the market regulator. This clarification comes after concerns were raised by trade bodies, including the US-India Strategic Partnership Forum (USISPF) and Nasscom.
Sebi’s proposals aim to prevent the misuse of digital platforms for stock market manipulation, malpractices, or unauthorised investment advice, the market regulator explained.
“It is not obligatory for any digital platform to be notified as SDP and there is no regulation of these digital platforms by Sebi. Curative actions currently being carried out by some digital platforms are in accordance with law. Preventive steps contemplated for any digital platform to get notified as SDP is not mandatory and it is for the platform to opt or not opt for getting notified as SDP,” Sebi said in the clarification.
The market regulator had floated a consultation paper in October, which was open to public comments. The draft circular is yet to be approved by the board.
Sebi's mandate requires regulated entities, such as market intermediaries, stock brokers, and mutual funds, to not associate with unregistered entities.
The market watchdog stated that the purpose of the provision for registering SDPs is to give confidence to regulated entities that if they associate with an SDP, it is automatically assured of not being held as violative of Sebi provisions.
“It is clarified that it is not expected that a regulated entity shall associate only with/through an SDP. It can also associate with/through a digital platform, which is not an SDP. However, in that case, it has the responsibility to ensure that the provisions of Regulation 16A of Intermediaries Regulations, Regulation 44B of SECC Regulations, and Regulation 82B of DP Regulations are complied with,” said Sebi.
 "SEBI")
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 "Jairam Ramesh, Jairam")
 "SEBI")
 "Advocacy group US-India Strategic Partnership Forum (USISPF) and IT trade body Nasscom have flagged concerns over a recent proposal by the markets regulator, Securities and Exchange Board (Sebi), to define Specified Digital Platforms (SDPs).")
