SEBI Clarifies Registration of Digital Platforms as Specified Digital Platforms (SDPs)
| Key Points | Details |
|---|---|
| Why in News | SEBI clarified that digital platforms are not mandated to register as Specified Digital Platforms (SDPs). |
| SDP Framework Purpose | Simplifies compliance for regulated entities (REs) associating with third parties. |
| Voluntary Registration | Digital platforms can choose whether to register as SDPs; it is not mandatory. |
| No Direct Regulation | SEBI does not regulate SDPs but mandates REs to comply with relevant regulations when partnering with non-SDP platforms. |
| Compliance Assurance | Associating with SDPs assures compliance with Regulation 16A (Intermediaries), Regulation 44B (SECC), and Regulation 82B (Depositories). |
| Regulated Entities' Responsibility | REs partnering with non-SDP platforms ensure compliance with SEBI's regulations. |
| Trade Bodies' Concerns | Clarification follows concerns raised by Nasscom and US-India Strategic Partnership Forum. |
| Background | SDP framework introduced to prevent misuse of digital platforms in unauthorized investment advice and stock market manipulation. |
| Draft Consultation Paper | SEBI floated the paper in October 2023; feedback collection phase completed, awaiting final circular. |