Markets regulator Sebi on Tuesday came out with a framework on associations between market intermediaries and unauthorised financial advisors, especially with regard to specified digital platforms. This came after Sebi in August amended rules aimed at regulating associations between intermediaries, like stock exchanges, clearing corporations and depositories, and entities providing financial advice or making performance claims. The rule restrains intermediaries, their agents, or associated persons from having direct or indirect ties with any entity that provides investment advice or recommendations without being registered or permitted by Sebi or makes performance or return-related claims unless specifically authorised by the regulator to do so. However, if these interactions occur through specified digital platforms, they will not be subject to these restrictions. In its circular on Tuesday, Sebi said the framework allows associations through "specified digital platforms", which the regulator will designate based on their ability to implement robust preventive and curative measures. These platforms must demonstrate to Sebi's satisfaction that they can prevent misuse, such as unauthorised advice or misleading performance claims, ensuring investor protection and market integrity. The circular clarifies that individuals or entities engaged solely in investor education are exempt from these restrictions. However, they must refrain from offering investment advice or making performance claims related to securities, either directly or indirectly. Additionally, market intermediaries have been given three months to terminate existing contracts with any person or entity engaged in unauthorised advisory services or performance claims. In a separate circular, Sebi tweaked the Common Application Form (CAF) by adding a new option to the application form used by Foreign Portfolio Investors (FPIs).