Ease of doing business- Changes in reporting
Summary
SEBI discontinues specific reporting requirements for stock brokers to enhance efficiency and ease of doing business while safeguarding investor collateral. The circular modifies Clause 15.5.3 of the master circular to reiterate the 'G Principle' for monitoring clients' funds and deletes Clauses 15.5.2, Table 5, Table 6, and Table 7. Stock exchanges are directed to implement these changes by issuing operational guidelines and SOPs within 15 days.
Text
Clause 15 of SEBI master circular on stock brokers safeguards against misutilisation of clients’ funds. Clause 42 safeguards against the use of one clients’ collateral for another.
Certain reports are being discontinued to bring in efficiencies in reporting and a step towards ease of doing business.
Clause 15.5.2 stands deleted.
Clause 15.5.3 stands modified whereby G principle is reiterated as follows: Stock exchanges shall put in place a mechanism for monitoring of clients’ funds lying with the stock brokers on the principle enumerated below:
The total available funds i.e. cash and cash equivalent with the stock broker and with the clearing corporation/clearing member should always be equal to or greater than clients’ funds as per the ledger balance.
Table 5, 6 and Table 7 stands deleted.
The provisions of this circular shall come into force with immediate effect.
Bring the provisions of this circular to the notice of stock brokers, and also disseminate the same on their websites.
Jointly issue the following within 15 days from the date of issuance of this circular: i. operational guidelines in consultation with relevant stakeholders; and ii. an SOP for monitoring the implementation of provisions of this circular.
Make amendments to the relevant bye-laws, rules and regulations for the implementation of the above provisions.
Communicate to SEBI, the status of the implementation of the provisions of this circular in their monthly development report.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 30 of SEBI (Stock Brokers) Regulations, 1992 and Regulation 51 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
Source: SecMarx — Ease of doing business- Changes in reporting. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.