The Securities and Exchange Board of India (SEBI) has issued an advisory to all registered intermediaries and regulated entities, clarifying that minutes of meetings with SEBI Officials or similar communication not explicitly given in writing may not be construed as policy interpretation or clarification on operational matters related to the Securities Markets.
In the Advisory dated 07.11.2024, SEBI emphasized that it frequently receives various forms of communication, based on prior meetings or discussions with SEBI Officials, where entities seek guidance on securities market regulations. In light of the same, SEBI has issued the present advisory warning stakeholders not to haphazardly act upon such unofficial communication when it has been provided without receipt of explicit written approval or written clarification or communication from SEBI.
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For formal guidance, SEBI apprised entities to adhere to the “Securities and Exchange Board of India (Informal Guidance) Scheme 2003”, which offers a structured pathway for interpretive letters or no-action letters.
SEBI has reinforced its stand that unofficial communications or opinions provided by its officials should not be seen as binding regulatory guidance without written communication of the same.
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By distancing itself from non-formal interactions, SEBI aims to maintain a clear boundary between its institutional policies and individual opinions passed without statutory assent, ensuring that only authorized, documented communications guide regulated activities.
The advisory is significant as it underscores the commitment portrayed by SEBI to formal regulatory processes, adherence to law and prevention of ambiguity in policy interpretations, thereby ensuring compliance and consistency across all market-related communications in similar vein to legally binding official communication published by Statutory Authorities.
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