"SEBI has amended the provisions related to registration of Sub-Broker to act as a market intermediary". Elucidate the statement and discuss the migration path for existing registered Sub-Brokers.

Under the current regulatory framework, Sub-Brokers ('SB') need to seek registration from SEBI under SEBI (Stock Broker and Sub-Broker) Regulations, 1992, and Authorized Persons ('AP') need to seek registration from the concerned Exchange. There is no difference in the operative role of a Sub-Broker and that of an Authorized Person. Therefore, SEBI vide its circular no. SEBI/HO/MIRSD/DoP/CIR/P/2018/117 dated 03/08/2018 has discontinued with sub-broker as an intermediary to be registered with SEBI. In view of the same, the need for the category of the Sub-Broker as a market intermediary may no longer be required. Therefore, it is decided that - No fresh registration shall be granted to any person as Sub-Broker. Any pending applications for registration as Sub-Broker under process, shall be returned to the concerned Stock Exchanges for onward transmission to the applicant. The registered Sub-Brokers shall have time till March 31, 2019 in order to migrate to act as an Authorised Person (AP) and / or Trading Member (TM). The sub-Brokers, who do not choose to migrate into AP and/or TM, shall deemed to have surrendered their registration with SEBI as Sub-Broker, w.e.f. March 31, 2019. Consequent upon migration/deemed surrender, the Certificate of Registration granted to the Sub-Broker by SEBI shall stand withdrawn. The migration path for existing registered Sub-Broker, shall be under: In case of a registered Sub-Broker who is already approved to act as AP in Derivatives Segment of the Exchanges, he shall be registered with the Exchanges to continue activities of Sub-Broker as AP in Cash Segment. In case of a registered Sub-Broker who is not approved by Stock Exchanges to act as AP in Derivatives Segment, Exchanges shall register them as AP in Cash Segment, to continue their operations without disruption. The existing Sub-Broker has an option to become a Trading Member, if the Sub-Broker meets the eligibility criteria prescribed under Stock Exchange Bye-Laws and SEBI Regulations and by complying with these Regulations.