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SEBI has released a consultation paper in which it has proposed regulated entities like mutual funds, PMS, AIFs and RIAs to maintain records of all mandatory communication for at least 8 years.
Currently, there is no mandatory requirement of record keeping of such communication.
In addition, the regulated entities are required to make these records and their acknowledgement available to SEBI when asked.
The regulator has clarified that it is only proposing to keep the records of mandatory communication by the regulated entities.
SEBI believes that this will help them in resolving investor grievances, protecting the interest of investors and identifying instances of breach of provisions of the laws where such record keeping can serve as evidence.
This would lead to better compliance, increase transparency and boost the confidence of investors in the securities market, said SEBI.
Stakeholders can share their feedback on this consultation paper by September 13 through this link.
