Sebi permits joint inspections of stock brokers by Market Infrastructure Institutions

Mumbai: The Securities and Exchange Board of India (Sebi) on Thursday allowed market infrastructure institutions (MIIs) to carry out joint inspection of stock brokers.

Now, annual inspections of stock brokers and depository participants are conducted by each MII including stock exchanges, depositories and clearing corporations separately. "Such an exercise unwarrantedly taxes the intermediaries due to frequent visits for inspections by different MIIs which result in disproportionate diversion of resources leading to disruption in the routine operations of the entities," Sebi said in a circular.

The regulator said entities selected for annual inspections would be inspected for all segments jointly by all exchanges along with their depository participant operations and clearing activity.


Further, MIIs have been asked to establish an information- sharing mechanism with one another for sharing of inspection observations of entities who hold multiple registrations with them.