SEBI Update – Association of persons regulated by the Board and their agents with certain persons

Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2024, Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Fourth Amendment) Regulations, 2024 and Securities and Exchange Board of India (Depositories and Participants) (Second Amendment) Regulations, 2024 have been notified by SEBI on August 26, 2024. 
These regulations inter alia provide that persons regulated by the Board (including recognised stock exchanges, clearing corporations and depositories), and agents of such persons shall not have any direct or indirect association with another person who-
Provides advice or recommendations related to securities without being registered with SEBI or permitted by SEBI.Makes claims regarding returns or performance, explicitly or implicitly, unless authorized by SEBI.
The prohibition does not apply to associations through a “specified digital platform.”
A “specified digital platform” is defined as one that has mechanisms in place for preventive and curative actions, ensuring it is not used for unauthorized activities (i.e., giving advice or making performance claims) as outlined in clauses (i) and (ii). SEBI will specify guidelines for the recognition of such platforms separately.
The term “another person” under these amendments does not include persons engaged in investor education, provided that such persons do not directly or indirectly engage in offering advice or making performance claims related to securities.
The guidelines on the preventive and curative measures for the digital platforms for their recognition as specified digital platform are being specified separately, the persons regulated by the Board (including recognised stock exchanges, clearing corporations and depositories), and their agents are advised to terminate their existing contracts, if any, with persons engaged in the activities mentioned in clauses (i) or (ii) of paragraph 2 of this circular, within three months from the date of issuance of this circular. 
Link – https://www.sebi.gov.in/legal/circulars/oct-2024/association-of-persons-regulated-by-the-board-and-their-agents-with-certain-persons_87837.html