Mumbai, Aug. 7 -- The Securities and Exchange Board of India (Sebi) will significantly reduce routine inspections of market intermediaries from this fiscal year, shifting to a risk-based supervisory model that targets firms flagged for potential violations while easing compliance burdens for well-governed entities.

The market regulator on Friday announced a revamped inspection framework for stock brokers, depository participants (DPs), investment advisers (IAs) and research analysts (RAs). It said the changes are aimed at improving regulatory efficiency while reducing duplication in supervisory processes.

Under the new approach, Sebi will conduct only about one-third of the inspections it carried out in the previous fiscal year, taking ...