Sebi to tweak fit and proper criteria; to introduce silver ETFs

Markets regulator Sebi has decided to tweak the criteria for determining 'Fit and Proper Person' and given its approval for the launch of silver exchange-traded funds (ETFs) in the country.

In addition, the board of Sebi approved an amendment to mutual fund rules to enable the introduction of silver ETFs with certain safeguards in line with the existing regulatory mechanism for gold ETFs.

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About Fit and Proper Person, Sebi said Fit and Proper Person criteria will be principle-based or/and rule-based as applicable.

The principle-based criteria should include integrity, honesty, ethical behaviour, reputation, fairness, and character, Sebi said in a statement after the board meeting.

Further, the rule-based criteria will determine the fit and proper status of the person based on the disqualifications as has been prescribed.

"Some of such disqualifications include an order of conviction passed against such person by a court for any offence, involving moral turpitude or such person has been declared insolvent and not discharged or has been categorised as a wilful defaulter or has been declared a fugitive economic offender or against whom an order has been passed by Sebi or any other financial sector regulator," it noted.

According to Sebi, the applicant or intermediary will have competence and capability in terms of infrastructure, manpower requirements and financial soundness, including meeting the net worth requirement, as provided in the regulations applicable to the applicant or the intermediary.