The Indian securities market is a dynamic and regulated ecosystem where investor protection, transparency, and market integrity are of utmost importance. At the heart of maintaining this integrity lies Securities Market Intermediaries Compliance—a framework that ensures all registered intermediaries operate within the legal, ethical, and regulatory boundaries laid down by the SEBI.

Securities market intermediaries are entities that facilitate various functions in the capital markets, such as brokers, merchant bankers, portfolio managers, investment advisers, registrars and transfer agents, custodians, credit rating agencies, depository participants, and mutual fund distributors, among others. Each intermediary plays a unique role in the financial market value chain and is subject to specific compliance obligations governed by SEBI regulations, circulars, and codes of conduct.

Compliance refers to adherence to applicable laws, rules, and regulations, including maintaining proper disclosures, submitting regular filings, implementing robust internal controls, managing conflicts of interest, and ensuring fair dealing with clients. A dedicated Compliance Officer is typically appointed to monitor, report, and ensure that the intermediary functions in full conformity with regulatory norms. Recent years have seen increased emphasis on cybersecurity guidelines, system audit requirements, Anti-Money Laundering (AML) compliance, and enhanced client disclosures. Intermediaries are also expected to conduct periodic internal audits and report any suspicious activities promptly.

Compliance today is not just regulatory but also reputational, requiring firms to cultivate a culture of ethics and transparency from the top down.