SEBI Board meeting - registration of intermediaries

SEBI in its 7th Feb Board meeting made an interesting decision:

2. Initial registration of intermediaries to be for five years:
The intermediaries would be granted registration initially for a period of five years. On assessment of the performance of the intermediary and its track record during the initial five years, it will be granted registration on permanent basis.

This is a departure from the permanent registration granted by SEBI (Intermediaries) Regulations 2008. While this will increase the process for both the intermediary and SEBI, it is probably a good balance given the reality of life - SEBI is more effective in creating entry barriers than in enforcing  the law against existing players.