Sebi seeks comments on amending norms for fiduciaries

Regulator Sebi today came out with a consultation paper on proposed amendments to regulations governing entities who undertake third party fiduciary duties and assignments under the securities law.

Amendments have been proposed to the Sebi (Fiduciaries in the Securities Market) regulations.

"This paper and the proposed amendment in various regulations concern those entities who undertake third party fiduciary duties/ assignments/ engagements under the securities laws, in respect of any issuer, pooled investment vehicle, restructuring, intermediaries, market infrastructure entities or investors in the securities," Sebi said.

The deadline for submitting public comments on the consultation paper is August 12.

Chartered accountants, company secretaries and valuers are among the fiduciaries in the securities market.

Fiduciaries such as merchant bankers, credit rating agencies, custodian and debenture trustees are regulated by Sebi.

In its report, Uday Kotak-led panel on corporate governance had recommended that Sebi should have clear powers to act against auditors and other third party fiduciaries that have statutory duties under the securities law.

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