SEBI Recommendation on Communication Protocol for Organizations

On November 7, 2024, SEBI issued an advisory to registered intermediaries and regulated entities on the appropriate protocol for communication with SEBI officials. The advisory clarifies that informal discussions, summaries or minutes of meetings submitted by entities to SEBI should not be construed as official endorsements or statements on securities market policies or operational matters. SEBI emphasized that entities should proceed with implementing measures requiring SEBI approval only after obtaining express, written permission or clarification from SEBI. For interpretive or policy-related queries, entities are advised to use the Securities and Exchange Board of India (Informal Guidance) Scheme, 2003 or its updates to formally request interpretive or no-action letters. This advisory, approved by the authority of SEBI, aims to reinforce the requirement for clear and documented communication and prevent misinterpretation in policy implementation. The entire recommendation can be accessed on the SEBI website.

Securities and Exchange Board of India

Advisory No. SEBI/HO/LAD1/LAD1V2DoP-4/P/ADV/2024/1 Date:07 November 2024

With,
All registered brokers/regulated entities.

Madam / Sir,

Subject: Consultancy on communication with SEBI Officials.

1. From time to time, SEBI departments receive various forms of communications from registered dealers/regulated entities seeking clarification on implementation of certain operational measures and/or policy interpretation on securities markets related matters referred to SEBI.

2. Sometimes such communication may be in the form of summary of discussions/minutes with SEBI Officer(s) or understanding of comments on a particular issue related to securities markets.

3. Such communication shall not be construed as approval from SEBI or as a statement or assessment on any matter, including any policy interpretation or statement on operational matters relating to securities markets, unless specifically communicated by SEBI.

4. In view of the above, all registered intermediaries/regulated entities are advised to:

A. You may implement measures requiring approval/clarification from SEBI only after receiving express written approval or written explanation or communication from SEBI; And

B. Refer to the mechanism provided under the Securities and Exchange Board of India (Informal Guidance) Scheme 2003 (or any amendment or re-enactment thereof) to obtain interpretive letters/no action letters from SEBI, if required.

5. This Recommendation has been published with the approval of the Competent Authority.

6. This Advisory is available on the SEBI website at www.sebi.gov.in..

Kind regards,

Durgesh Kumar Thakur
Deputy General Manager
Wire. No.: 022 26449144
Email ID: (email protected)