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TMI BlogMaster Circular for Investment AdvisersX X X X Extracts X X X X X X X X Extracts X X X X ..... ave been done or taken under the corresponding provisions of this Master Circular; b) Any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular; c) The previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars, any penalty, incurred in respect of any violation committed against the rescinded circulars, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the rescinded circulars have never been rescinded. 5. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 6. This circular is available on SEBI website at www.sebi.gov.in . Yours faithfully Srishti Ambokar Deputy General Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation or periodic updation as the case maybe in respect of such dependent family members. (h) IA shall, wherever available, advise direct plans (non-commission based) of products only. (i) The IAs shall maintain on record an annual certificate from an auditor (in case of individual IA) and its statutory auditor (in case of a non-individual IA) confirming compliance with the client level segregation requirements as specified in Regulation 22 of the IA Regulations. Such annual certificate shall be obtained within 6 months of the end of the financial year and form part of compliance audit, in terms of Regulation 19(3) of the IA Regulations. (ii) Agreement between IA and the client (a) Regulation 19(1)(d) of the IA Regulations provides that IA shall enter into an investment advisory agreement with its clients. The said agreement shall mandatorily cover the terms and conditions provided in Annexure A. (b) IA can include additional terms and conditions in the agreement without diluting the provisions of the IA Regulations and amendments thereto as well as circulars issued thereunder. (c) IA shall ensure that neither any investment advice is rendered nor any fee is charged unt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the IA Regulations. However, such IAs shall hold National Institute of Securities Market (NISM) accredited certifications and comply with other conditions as specified under Regulation 7(2) of the IA Regulations at all times. (v) Registration as Non Individual Investment Advisor a. As per Regulation 13(e) of the IA Regulations, an individual IA shall apply for registration as non-individual investment adviser on or before reaching 150 clients. b. Such application for registration shall be made in FORM-A as per the IA Regulations, along with the requisite fee and same shall be assessed in accordance with the provisions of the IA Regulations and amendments thereto as well as circulars issued thereunder. c. Once number of clients reaches 150 and till grant of registration as a non-individual IA, Individual IA shall not on-board fresh clients. However, during the period of examination of application by SEBI, individual IA shall continue to service existing clients. In case the aforesaid IA does not get registration as non-individual IA, such IA shall continue the advisory activities as an Individual IA while ensuring that the numbers of clients does not exceed 150 in total. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of non-individual clients, IA shall use the investment policy as approved by board/management team of such non- individual clients for risk profiling and suitability analysis. c. The discretion to share the investment policy/relevant excerpts of the policy shall lie with the non-individual client. However, IA shall have discretion not to onboard non-individual clients if they are unable to do risk profiling of the non-individual client in the absence of investment policy. (ix) Display of details on website and in other communication channels In order to protect the interest of investors and bring more transparency in the functioning of the IAs, the IAs shall display the following information prominently on its website, mobile app, printed or electronic materials, know your client forms, client agreements and other correspondences with the clients: • Complete name of Investment Adviser as registered with SEBI, • Type of Registration-Individual, Non-Individual, • Registration number, validity of registration, • Complete address with telephone numbers, • Contact details of the Principal Officer -contact no, email id etc., • Corresp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T ADVISERS 3. Administration and Supervision of Investment Advisers7 3.1 SEBI, vide Circular SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016, allowed registered IAs to use infrastructure of the stock exchanges to purchase and redeem mutual fund units directly from Asset Management Companies on behalf of their clients. 3.2 As per Regulation 14 of the IA Regulations, SEBI can recognize any body/body corporate for the purpose of regulating IAs. It further provides that SEBI may, at the time of recognition of such body or body corporate, delegate administration and supervision of IAs to such body or body corporate on such terms and conditions as may be specified. 3.3 Further, the second proviso to Regulation 38 (2) of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 states, inter alia, that a recognized stock exchange may engage in activities, whether involving deployment of funds or otherwise that are unrelated or not incidental to its activity as a stock exchange, through a separate legal entity and subject to approval of the Board. 3.4 Considering the growing number of registered IAs and the above mentioned provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nistration and supervision of the IAs on such terms and conditions as may be specified. Accordingly, an entity granted recognition under the aforesaid Regulation shall be designated as "Investment Adviser Administration and Supervisory Body" ("IAASB") and shall be entrusted with the administration and supervision of IAs. 4.2 In this regard, BSE Administration & Supervision Limited (BASL), a wholly owned subsidiary of BSE Limited, has been granted recognition as IAASB for a period of three years from June 01, 2021. The details may be perused in the Press Release issued by SEBI on June 14, 2021 and available at https://www.sebi.gov.in/media/press-releases/jun-2021/bse-administration- and-supervision-limited-granted-recognition-for-administration-and- supervision-of-investment-advisers_50540.html, which also provides a link for the Standard Operating Procedure (SOP) and the Frequently Asked Questions (FAQs) issued by BASL. 4.3 IAASB shall inter-alia have following responsibilities: i. Supervision of IAs including both on-site and offsite ii. Grievance redressal of clients and IAs iii. Administrative action including issuing warning and referring to SEBI for enforcement actio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SaaS) based solution for managing their Governance, Risk & Compliance (GRC) functions so as to improve their cyber Security Posture. As observed by MoE&IT, though SaaS may provide ease of doing business and quick turnaround, but it may bring significant risk to health of financial sector as many a time risk and compliance data of the institution moves beyond the legal and jurisdictional boundary of India due to nature of shared cloud SaaS, thereby posing risk to the data safety and security. 5.2 In this regard, Indian Computer Emergency Response Team (CERT-in) has issued an advisory for Financial Sector organizations. The advisory has been forwarded to SEBI for bringing the same to the notice of financial sector organization. The advisory can be viewed at Annexure D. 5.3 It is advised to ensure complete protection and seamless control over the critical systems at your organizations by continuous monitoring through direct control and supervision protocol mechanisms while keeping the critical data within the legal boundary of India. vide e-mail dated November 14, 2022 communicated the extended timeline for compliance by IAs to BSE Administration & Supervision Limited 5.4 The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereof etc., at one single place, in a lucid language, for ease of reference. 7.2 All registered IAs are advised to bring to the notice of their clients the Investor Charter as provided at Annexure B by prominently displaying on their websites and mobile applications. IAs not having websites/mobile applications shall, as a one-time measure, send Investor Charter to the investors on their registered e-mail address. 7.3 IAs shall disclose the details of investor complaints by 7th of the succeeding month in the revised format as per Annexure C on a monthly basis. IAs not having websites/mobile applications shall send status of Investor Complaints to the investors on their registered email on a monthly basis. 7.4 Further, the IAs are advised to display link/option to lodge complaint with them directly on their websites and mobile apps. Additionally, link to SCORES website/ link to download mobile app (SEBI SCORES) may also be provided. 7.5 The disclosure requirements under this clause came into effect from January 01, 2022. VI. MISCELLANEOUS 8. Procedure for seeking prior approval for change in control12 8.1. Regulation 15(11) of the IA Regulations, IA shall obtain prior ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered stock broker, clearing member, depository participant, in addition to the above, it shall obtain approval /NOC from all the stock exchanges/clearing corporations/depositories, where the incumbent is a member/depository participant and submit self-attested copy of the same to SEBI. iii. The prior approval granted by SEBI shall be valid for a period of six months from the date of such approval within which the applicant shall file application for fresh registration pursuant to change in control. 8.3. To streamline the process of providing approval to the proposed change in control of an IA in matters which involve scheme(s) of arrangement which needs sanction of the National Company Law Tribunal ("NCLT") in terms of the provisions of the Companies Act, 2013, the following has been decided: i. The application seeking approval for the proposed change in control of the IA shall be filed with SEBI prior to filing the application with NCLT. ii. Upon being satisfied with compliance of the applicable regulatory requirements, an in-principle approval will be granted by SEBI; iii. The validity of such in-principle approval shall be three months from the date issuance, with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndard warning in visual media based advertisement and accompanying voice over reiteration shall be audible in a clear and understandable manner. For example, in standard warning both the visual and the voice over reiteration containing 20 words running for at least 10 seconds may be considered as clear and understandable. v. Whenever the advertisement is being issued in a language other than English, it will be ensured that the standard warning is accurately translated in the language of the advertisement. vi. In case the mode of advertisement is SMS/Message/Pop-up, social media etc. and the details such as full name, logo/brand name, full registered office address, SEBI registration number, membership number of a SEBI recognized supervisory body and standard disclaimer are not mentioned, then official website hyperlink should be provided in such SMS/Message/Pop-up, etc. and the website must contain all such details. vii. In case any specific security/ securities are displayed in the advertisement as examples, disclaimer that "The securities quoted are for illustration only and are not recommendatory" should be mentioned. viii. Advertisements and communications/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proval for the advertisement/material shall be obtained from SEBI recognized supervisory body (BSE Administration & Supervision Ltd. (BASL)) before issue. ii. In the event of suspension of any IA by SEBI and/or by SEBI recognized supervisory body, the IA so suspended shall not issue any advertisement either singly or jointly with any other IA, during the period of suspension. iii. The IA/RA shall not engage in games, leagues, schemes, competitions etc. which may involve distribution of prize monies, medals, gifts, etc. iv. These norms shall be applicable to any other investment/research/consultancy agency associated with the IA concerned and issuing advertisement wherein the IA has been named in the advertisement. v. Copy of the advertisement shall be retained by IA for a period of five years in terms of Regulation 19(2) of the IA Regulations. vi. Any additional guidelines as may be specified by SEBI or SEBI recognized supervisory body from time to time. 9.2. In order to ensure the transparency in usage of brand name/trade name/logo, IA/RA shall ensure that: i. The information such as name of the IA as registered with SEBI, its logo, its registration number and its co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected that any market related news received by them either in their official mail/personal mail/blog or in any other manner, should be forwarded only after the same has been seen and approved by the IA's Compliance Officer. If an employee fails to do so, he/she shall be deemed to have violated the various provisions contained in SEBI Act/Rules/Regulations etc. and shall be liable for action. The Compliance Officer shall also be held liable for breach of duty in this regard16. 12. Guidelines on Outsourcing of Activities by Intermediaries17 12.1. SEBI Regulations for various intermediaries require that they shall render at all times high standards of service and exercise due diligence and ensure proper care in their operations. 12.2. It has been observed that often the intermediaries resort to outsourcing with a view to reduce costs, and at times, for strategic reasons. 12.3. Outsourcing may be defined as the use of one or more than one third party - either within or outside the group - by a registered intermediary to perform the activities associated with services which the intermediary offers. 12.4. Principles for Outsourcing The risks associated with outsourcing may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or managing conflict of interest. They shall be responsible for educating their associated persons for compliance of these guidelines. 14.3. For the purpose of these guidelines "associated persons" shall have the same meaning as defined in Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007. 14.4. Intermediaries and their associated persons shall, a. lay down, with active involvement of senior management, policies and internal procedures to identify and avoid or to deal or manage actual or potential conflict of interest, develop an internal code of conduct governing operations and formulate standards of appropriate conduct in the performance of their activities, and ensure to communicate such policies, procedures and code to all concerned; b. at all times maintain high standards of integrity in the conduct of their business; c. ensure fair treatment of their clients and not discriminate amongst them; d. ensure that their personal interest does not, at any time conflict with their duty to their clients and client's interest always takes primacy in their advice, investment decisions and transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be appropriately identified as such in public domain. 16. Reporting Requirements under Foreign Account Tax Compliance Act21 16.1. India joined the Multilateral Competent Authority Agreement (MCAA) on Automatic Exchange of Financial Account Information on June 03, 2015. In terms of the MCAA, all countries which are signatory to MCAA, are obliged to exchange a wide range of financial information after collecting the same from financial institutions in their country / jurisdiction. 16.2. On July 09, 2015, the Governments of India and United States of America (USA) signed an agreement to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA) in India. The USA enacted FATCA in 2010 to obtain information on accounts held by US taxpayers in other countries. As per the aforesaid agreement, foreign financial institutions (FFIs) in India will be required to report tax information about US account holders / taxpayers directly to the Indian Government which will, in turn, relay that information to the U.S. Internal Revenue Service (IRS). 16.3. For implementation of the MCAA and agreement with USA, the Government of India has made necess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f complaints of previous months resolved in the current month. # Inclusive of complaints pending as on the last day of the month ^ Average Resolution time is the sum total of time taken to resolve each complaint in days, in the current month divided by total number of complaints resolved in the current month Trend of monthly disposal of complaints Sr. No. Month Carried forward from previous month Received Resolved* Pending# 1 April, YYYY 2 May, YYYY 3 June, YYYY 4 …………….. 5 March, YYYY Grand Total * Inclusive of complaints of previous months resolved in the current month. #Inclusive of complaints pending as on the last day of the month. Trend of annual disposal of complaints Sr. No. Year Carried forward from previous year Received Resolved Pending 1 2018-19 2 2019-20 3 2020-21 4 20XX-XX Grand Total * Inclusive of complaints of previous years resolved in the current year. # Inclusive of complaints pending as on the last day of the year. 2. Undertaking on compliance of the advisory for Financial Sector Organizations regarding Software as a Service (SaaS) based solutions to be submitted half yearly The com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eive such sums of monies from the client as are necessary to discharge the client's liability towards fees owed to the Investment Adviser. • Investment Adviser shall not, in the course of performing its services to the client, hold out any investment advice implying any assured returns or minimum returns or target return or percentage accuracy or service provision till achievement of target returns or any other nomenclature that gives the impression to the client that the investment advice is risk-free and/or not susceptible to market risks and or that it can generate returns with any level of assurance. c) Fees specified under Investment Adviser Regulations and relevant circulars issued thereunder. (to be specifically mentioned here) d) Fees charged to the client. (to be specifically mentioned here) 3. Scope of services: The services to be provided by the Investment Adviser to be described in detail. However, the same shall be subject to the activities permitted under the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013. The Investment Adviser shall act in a fiduciary capacity towards its clients at all times. 4. Functions of the Investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Termination - This Agreement may be terminated under the following circumstances, namely- a) Voluntary/ mandatory termination by the Investment Adviser. b) Voluntary/ mandatory termination by the client. c) Suspension/ Cancellation of registration of Investment Adviser by SEBI. d) Any other action taken by other regulatory body/ Government authority. In case of a voluntary termination of the agreement, the client would be required to give a 30 days prior written notice while the Investment Adviser would be required to give a 30 days prior written notice. In case of suspension of the certificate of registration of the IA, the client may be provided with the option to terminate the agreement. 10. Implications of Amendments and termination: The implications of Amendment, Termination and assignment, such as set off of fees received by the Investment Adviser, refund of fees, completion/termination of investment-in-progress, transition support obligations of the Investment Adviser, etc. shall also be provided in detail. 11. Relationship with related parties: The Investment Adviser to clearly declare that it is carrying on its activities independently, at an arms-length basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of fees for investment advice rendered. ii. Fee modalities and periodicity, by attaching a detailed fee schedule to the agreement; iii. Illustration(s) on how the fee will be determined; iv. whether payment to be made in advance; v. type of documents evidencing receipt of payment of fee; vi. Periodicity of billing with clear date and service period (b) The payment of fees shall be through a mode which shows traceability of funds. Such modes may include account payee crossed cheque/ Demand Drafts or by way of direct credit to the bank accounts through NEFT/ RTGS/ IMPS/ UPI or any other mode specified by SEBI from time to time. However, the fees shall not be accepted in cash. 18. Liability of Investment Adviser: The agreement to clearly state that the Investment Adviser shall not incur any liability by reason of any loss, which a client may suffer by reason of any depletion in the value of the assets under advice, which may result by reason of fluctuation in asset value, or by reason of non-performance or underperformance of the securities/funds or any other market conditions. 19. Representations and covenants: Adequate and appropriate representations about quali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, fire, flood, catastrophe, acts of God, insurrection, war, riot, or failure of communication or power supply. In the event of equipment breakdowns beyond its control, the Advisor shall take reasonable steps to minimize service interruptions but shall have no liability with respect thereto. 26. Miscellaneous: Each party agrees to perform such further actions and execute such further agreements as are necessary to effectuate the purposes hereof. ANNEXURE B INVESTOR CHARTER IN RESPECT OF IAs A. Vision and Mission Statements for investors • Vision Invest with knowledge & safety. • Mission Every investor should be able to invest in right investment products based on their needs, manage and monitor them to meet their goals, access reports and enjoy financial wellness. B. Details of business transacted by the Investment Adviser with respect to the investors • To enter into an agreement with the client providing all details including fee details, aspect of Conflict of interest disclosure and maintaining confidentiality of information. • To do a proper and unbiased risk - profiling and suitability assessment of the client. • To obtain registration wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is available on SEBI website in the following link: https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intm Id=13) iv. Pay only advisory fees to your Investment Adviser. Make payments of advisory fees through banking channels only and maintain duly signed receipts mentioning the details of your payments. v. Always ask for your risk profiling before accepting investment advice. Insist that Investment Adviser provides advisory strictly on the basis of your risk profiling and take into account available investment alternatives. vi. Ask all relevant questions and clear your doubts with your Investment Adviser before acting on advice. vii. Assess the risk-return profile of the investment as well as the liquidity and safety aspects before making investments. viii. Insist on getting the terms and conditions in writing duly signed and stamped. Read these terms and conditions carefully particularly regarding advisory fees, advisory plans, category of recommendations etc. before dealing with any Investment Adviser. ix. Be vigilant in your transactions. x. Approach the appropriate authorities for redressal of your doubts / grievances. xi. Inform SEBI abou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s months resolved in the current month. # Inclusive of complaints pending as on the last day of the month ANNEXURE D ADVISORY FOR FINANCIAL SECTOR ORGANIZATIONS SOFTWARE AS A SERVICE (SaaS) BASED SOLUTION TLP:AMBER CERT-Fin Advisory- 201155100308 Advisory for Financial Sector Organisations- RBI and SEBI Overview It has been learnt that some of the financial sector institutions are availing or thinking of availing Software as a Service (SaaS) based solution for managing their Governance, Risk & compliance (GRC) functions so as to improve their cyber security posture. Many a time the risk & compliance data of the institution moves cross border beyond the legal and jurisdictional boundary of India due to the nature of shared cloud SaaS. While SaaS may provide ease of doing business and quick turnaround, it also brings significant risk to the overall health of India's financial sector with respect to data safety and security. Description If the following data sets fall in the hands of an adversary/cyber attacker, it may lead to unprecedented increase in the attack surface area and weakening of Indian financial sector infrastructure's overall resilience. • Cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , directly or indirectly (in case of an unlisted applicant or intermediary, any person holding twenty percent or more voting rights, irrespective of whether they hold controlling interest or exercise control, shall be required to fulfill the 'fit and proper person' criteria) are fit and proper person in terms of Schedule II of SEBI (Intermediaries) Regulations, 2008. 2. We bear integrity, honesty, ethical behaviour, reputation, fairness and character. 3. We do not incur following disqualifications mentioned in Clause 3(b) of Schedule II of SEBI (Intermediaries) Regulations, 2008 i.e. (i) No criminal complaint or information under section 154 of the Code of Criminal Procedure, 1973 (2 of 1974) has been filed against us by the Board and which is pending. (ii) No charge sheet has been filed against us by any enforcement agency in matters concerning economic offences and is pending. (iii) No order of restraint, prohibition or debarment has been passed against us by the Board or any other regulatory authority or enforcement agency in any matter concerning securities laws or financial markets and such order is in force. (iv) No recovery proceedings have been initiated by the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of the intermediary. The policy shall be based on an evaluation of risk concentrations, limits on the acceptable overall level of outsourced activities, risks arising from outsourcing multiple activities to the same entity, etc. 1.2. The Board shall mandate a regular review of outsourcing policy for such activities in the wake of changing business environment. It shall also have overall responsibility for ensuring that all ongoing outsourcing decisions taken by the intermediary and the activities undertaken by the third-party, are in keeping with its outsourcing policy. 2. The intermediary shall establish a comprehensive outsourcing risk management programme to address the outsourced activities and the relationship with the third party. 2.1. An intermediary shall make an assessment of outsourcing risk which depends on several factors, including the scope and materiality of the outsourced activity, etc. The factors that could help in considering materiality in a risk management programme include- 2.1.1. The impact of failure of a third party to adequately perform the activity on the financial, reputational and operational performance of the intermediary and on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the investors for the loss incurred by them due to the failure of the third party and also be responsible for redressal of the grievances received from investors arising out of activities rendered by the third party. 3.3. The facilities / premises / data that are involved in carrying out the outsourced activity by the service provider shall be deemed to be those of the registered intermediary. The intermediary itself and Regulator or the persons authorized by it shall have the right to access the same at any point of time. 3.4. Outsourcing arrangements shall not impair the ability of SEBI/SRO or auditors to exercise its regulatory responsibilities such as supervision/inspection of the intermediary. 4. The intermediary shall conduct appropriate due diligence in selecting the third party and in monitoring of its performance. 4.1. It is important that the intermediary exercises due care, skill, and diligence in the selection of the third party to ensure that the third party has the ability and capacity to undertake the provision of the service effectively. 4.2. The due diligence undertaken by an intermediary shall include assessment of: 4.2.1. third party's resources and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfidentiality clauses to ensure protection of proprietary and customer data during the tenure of the contract and also after the expiry of the contract; 5.2.7. specifies the responsibilities of the third party with respect to the IT security and contingency plans, insurance cover, business continuity and disaster recovery plans, force majeure clause, etc.; 5.2.8. provides for preservation of the documents and data by third party; 5.2.9. provides for the mechanisms to resolve disputes arising from implementation of the outsourcing contract; 5.2.10. provides for termination of the contract, termination rights, transfer of information and exit strategies; 5.2.11. addresses additional issues arising from country risks and potential obstacles in exercising oversight and management of the arrangements when intermediary outsources its activities to foreign third party. For example, the contract shall include choice-of-law provisions and agreement covenants and jurisdictional covenants that provide for adjudication of disputes between the parties under the laws of a specific jurisdiction; 5.2.12. neither prevents nor impedes the intermediary from meeting its respective regulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d party shall have adequate checks and balances to ensure the same. 7.3. In cases where the third party is providing similar services to multiple entities, the intermediary shall ensure that adequate care is taken by the third party to build safeguards for data security and confidentiality. 8. Potential risks posed where the outsourced activities of multiple intermediaries are concentrated with a limited number of third parties. In instances, where the third party acts as an outsourcing agent for multiple intermediaries, it is the duty of the third party and the intermediary to ensure that strong safeguards are put in place so that there is no co-mingling of information /documents, records and assets. IX. APPENDIX: LIST OF CIRCULARS / NOTIFICATIONS/COMMUNICATIONS * APPENDIX: LIST OF CIRCULARS / NOTIFICATIONS/COMMUNICATIONS Sr. No. Circular/ Notification/ Communication No. Date Subject 1 Cir/ ISD/1/2011 23-Mar-11 Unauthenticated news circulated by SEBI Registered Market Intermediaries through various modes of communication 2 CIR/ISD/2/2011 24-Mar-11 Addendum to Circular no. Cir/ISD/1/2011 dated March 23, 2011 3 CIR/MIRSD/24/2011 15-Dec-11 Guide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credited Investors 21 SEBI/HO/MIRSD/ MIRSD- PoD-2/P/CIR/2022/163 28-Nov-22 Procedure for seeking prior approval for change in control 22 SEBI/HO/DEPA-III/DEPA- III_SSU/P/CIR/2022/25 25-Feb-22 Approach to securities market data access and terms of usage of data provided by data sources in Indian securities market 23 SEBI/HO/MIRSD/ MIRSD- PoD-2/P/CIR/2023/51 05-Apr-23 Advertisement code for Investment Advisers (IA) and Research Analysts (RA) 24 SEBI/HO/MIRSD/ MIRSD- PoD-2/P/CIR/2023/52 06-Apr-23 Usage of brand name/trade name by Investment Advisers (IA) and Research Analysts (RA) ------- 1 Reference: Circular SEBI/HO/IMD/DF1/CIR/P/2020/182 dated September 23, 2020 2 "Group" and "family of an individual investment adviser" shall be as per Regulation 22(3)(iii) and Regulation 2(gc) respectively of the IA Regulations 3 "Family of client" and "AUA" shall be as per Regulation 2(gb) and Regulation 2(aa) respectively of the IA Regulations 4 Reference: Circular No. SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2021/694 dated December 21, 2021 5 Reference: Circular No. SEBI/HO/IMD/DF1/CIR/P/2019/169 dated December 27, 2019 6 Reference: Circular No. SEBI/HO/IMD/IMD-II CI ..... 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