SEBI Reinforces Communication Guidelines for Market Entities

The Securities and Exchange Board of India (SEBI) has clarified its communication policy with intermediaries and regulated entities. It advises them to rely solely on formal, written communications for approvals or clarifications on securities regulations, highlighting that informal exchanges should not be considered official.

The Securities and Exchange Board of India (SEBI) has laid out strict communication guidelines for market intermediaries and regulated entities, stressing the need for formal approval processes. The advisory was issued following observations of increased informal requests for guidance.

SEBI stated that many entities seek interpretations and operational clarifications through summaries of meetings or unofficial communications. In response, SEBI reiterated that such interactions should not be assumed as official stances or approvals on policy matters.

Entities are advised to secure written confirmations from SEBI for any operational or policy-related issues. The regulator emphasized using the Securities and Exchange Board of India (Informal Guidance) Scheme 2003 for official requests, ensuring that only these are considered valid by the board.

(With inputs from agencies.)