This website is only for informational purposes. Visitors are requested to note that the information is intended to be correct, complete, and up-to-date. Juris Corp does not warrant that the information contained on this website is accurate or complete, and disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.

This website is not intended to be a source of advertising or solicitation. The reader must not consider the information contained herein to be an invitation for a lawyer-client relationship, must not rely on information provided herein and must seek independent advice. Transmission, receipt or use of any information on this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act or refrain from acting, based upon any or all of the contents of this website.

Furthermore, Juris Corp does not wish to represent anyone desiring representation based solely upon viewing this web site. Finally, the reader is warned that the use of e-mail for confidential or sensitive information is susceptible to inherent risks of lack of confidentiality associated with sending e-mail over the internet.

By clicking on the "I understand and agree" button below, the user acknowledges that:

  • This website is not a mode of advertisement, promotion, personal communication, or solicitation of any sort whatsoever and the user wishes to gain information about us for his/her own reasons;
  • Entering into this website does not establish a lawyer-client relationship.

We are not liable for any consequence of any action taken by the user relying on information provided under this website. In cases where the user has any legal issues, he/she must seek independent legal advice.

JC - Legal Updates - Platforms providing execution-only services to get regulated

Legal Updates

01 Aug 2022

Platforms providing execution-only services to get regulated

Platforms providing execution-only services (“EOP”) in direct plans of mutual funds are proposed to be regulated by the Securities and Exchange Board of India(“SEBI”) and a new framework for such platforms is proposed to be introduced. The following are some of the key proposals:

1)    Regulation of EOP’s

EOPs are proposed to be regulated in the following manner and comments are invited to suggest the most appropriate manner of regulating EOP’s:

(a)  to be registered as an intermediary with the SEBI under separate regulations for EOPs wherein the EOP shall act as an agent of the investor; or

(b)   to obtain registration from Association of Mutual Fund of India (“AMFI”) wherein the EOPs shall act as an agent of the Asset Management Company(s); or

(c)   to obtain limited purpose membership with Stock Exchanges wherein the EOPs shall act as an agent of the investors.

2)    EOP’s can provide both financial and non-financial services, respectively.

3)    Other conditions like EOP to be in the form of a body corporate having minimum net worth has been stipulated.

The Securities and Exchange Board of India (“SEBI”) on 22nd July, 2022 issued a consultation paper titled framework for platforms providing “execution-only” services in direct plans of Mutual Funds with respect to the above. Comments are invited till 12th August, 2022.

SEBI | Consultation Paper on the framework for platforms providing “execution-only” services in direct plans of Mutual Funds

For any further information, please contact Ms. Apurva Kanvinde (apurva.kanvinde@jclex.com).