Enhanced obligations and responsibilities for qualified stock-brokers, introduced vide SEBI (Stock-Brokers) (Amendment) Regulations, 2023

SEBI

On 17-1-2023, the Securities and Exchange Board of India notified the Securities and Exchange Board of India (Stock Brokers) (Amendment) Regulations, 2023 to amend the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992. The provisions came into effect on 17-1-2023 except for the provisions of Regulation 17, Schedule V and Schedule VI.

Key Points:

  1. Regulation 18-D relating to Enhanced obligations and responsibilities for qualified stock-brokers has been inserted.

  2. A qualified stock-broker will be designated by the Board on the basis of size, impact on investors and securities market, governance and service standards. Other parameters are:

    • The total number of active clients

    • The available total assets of clients with the stock-brokers

    • Trading volumes of the stock-broker

    • Margin obligations of all clients of a stock-broker

    • Compliance score

    • Grievance redressal score

    • Proprietary trading volumes

  3. Obligations and responsibilities of a qualified stock-broker will be:

    • appropriate governance structure and processes

    • appropriate risk management policy and processes

    • scalable infrastructure and appropriate technical capacity

    • framework for orderly winding down

    • robust cyber security framework and processes

    • investor services including online complaint redressal mechanism


*Kriti Kumar, Editorial Assistant has reported this brief.

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