Sebi to overhaul 30-yr-old stock broker rules ‘ASAP’
The Securities and Exchange Board of India (Sebi) plans to update stock broker regulations by December 2025 to enhance risk management and data protection. This review follows a discussion paper on rationalizing existing rules, some of which are o...
By ET Bureau |
ET Bureau & Agencies
The Securities and Exchange Board of India (Sebi) plans to review stock broker regulations to strengthen risk management and data protection, its chairman Tuhin Kanta Pandey said on Tuesday.
“We want to change it (the regulations) as soon as possible, maybe by December 2025,” Pandey said on the sidelines of an industry event.
The rules for stock brokers were framed over 30 years ago.
In August, Sebi came out with a discussion paper to rationalise the regulations, in which it also proposed to change the definition of algorithmic and proprietary trading, among other things.
The regulator is also examining the technical glitch at the Multi Commodity Exchange (MCX), which disrupted trading activity last week.
Pandey said a root-cause analysis is currently underway. “The last breakdown occurred in July, and it has happened again, which isn’t right. These issues have occurred multiple times. However, we can only comment after a proper review. We will follow the standard operating procedure,” he said.
Market participants had raised concerns about the stability of the commodity market’s infrastructure after the four-hour shutdown of the country’s largest commodity trading bourse last week.
In October 2023, MCX moved to a new trading engine developed by TCS. Prior to that, 63 Moons Technologies was the software provider for its trading engine.
The Sebi chairman also said the regulator is mindful of the needs of long-term investors who face operational hurdles.
“To address this, we are proposing to allow investors who had purchased physical securities prior to FY20 but could not lodge such transfers earlier to now complete them and have those securities transferred in their name,” Pandey said. “This measure will provide long-awaited relief to physical shareholders.”
Angel One Settles Disclosure Case
Angel One has settled a case of securities law violation with Sebi by paying ₹34 lakh as settlement amount. In April, Sebi had issued a show cause notice to the brokerage firm alleging violation of disclosure norms.
“We want to change it (the regulations) as soon as possible, maybe by December 2025,” Pandey said on the sidelines of an industry event.
The rules for stock brokers were framed over 30 years ago.
In August, Sebi came out with a discussion paper to rationalise the regulations, in which it also proposed to change the definition of algorithmic and proprietary trading, among other things.
The regulator is also examining the technical glitch at the Multi Commodity Exchange (MCX), which disrupted trading activity last week.
Pandey said a root-cause analysis is currently underway. “The last breakdown occurred in July, and it has happened again, which isn’t right. These issues have occurred multiple times. However, we can only comment after a proper review. We will follow the standard operating procedure,” he said.
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Market participants had raised concerns about the stability of the commodity market’s infrastructure after the four-hour shutdown of the country’s largest commodity trading bourse last week.
In October 2023, MCX moved to a new trading engine developed by TCS. Prior to that, 63 Moons Technologies was the software provider for its trading engine.
The Sebi chairman also said the regulator is mindful of the needs of long-term investors who face operational hurdles.
“To address this, we are proposing to allow investors who had purchased physical securities prior to FY20 but could not lodge such transfers earlier to now complete them and have those securities transferred in their name,” Pandey said. “This measure will provide long-awaited relief to physical shareholders.”
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Angel One Settles Disclosure Case
Angel One has settled a case of securities law violation with Sebi by paying ₹34 lakh as settlement amount. In April, Sebi had issued a show cause notice to the brokerage firm alleging violation of disclosure norms.
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