Intermediaries are an integral part of securities market. They are the facilitators ensuring seamless functioning of securities market. SEBI regulates various intermediaries in the primary markets through Regulations for

CS Professional · Strategic Management and Corporate Finance · PYQS · June 2025
Intermediaries are an integral part of securities market. They are the facilitators ensuring seamless functioning of securities market. SEBI regulates various intermediaries in the primary markets through Regulations for these intermediaries. These Regulations allow SEBI to inspect the functioning of these intermediaries and to ensure that their conduct is market appropriate and fair. Based on the above statements answer the following questions: (i) Whether insurance agent or insurance broker is exempted from obtaining registration under SEBI (Investment Advisers) Regulations 2013.

Answer & Explanation:

Registration under SEBI (Investment Advisers) Regulations, 2013 Regulation 4 of the SEBI (Investment Advisers) Regulations, 2013 provides that any insurance agent or insurance broker who offers investment advice solely in insurance products and is registered with Insurance Regulatory and Development Authority for such activity shall not be required to seek registration under the under SEBI (Investment Advisers) Regulations, 2013. Insurance Agents or Insurance Brokers registered with IRDA who provide advice in various insurance products across manufacturers shall be regulated by IRDA only. If such Insurance Agents or Insurance Brokers expand their activities to include investment advice on other financial products, then they shall register and be regulated under the SEBI (Investment Advisers) Regulations, 2013 for financial products other than insurance products.

Topics: Corporate Finance

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