Single registration for Stock Brokers & Clearing Members

CIR/MIRSD/4/2014 · 2014-10-13 · SEBI

Summary

This circular implements a single registration framework for stock brokers and clearing members, replacing the previous requirement of separate registrations for each exchange. It outlines specific procedures for new applicants and existing entities seeking to operate on additional exchanges or clearing corporations. Stock exchanges and clearing corporations are mandated to exercise due diligence regarding fit and proper criteria before granting approval.

Text

existing requirement of obtaining registration as stock broker/ clearing member for each stock exchange/ clearing corporation has been done away with and instead a single registration with any stock exchange/ clearing corporation shall be required.

entity shall apply to SEBI through the respective stock exchange or clearing corporation in the manner prescribed in the Broker Regulations. The entity shall be issued one certificate of registration, irrespective of the stock exchange(s)/ clearing corporation(s) or number of segment(s).

for operating on any other stock exchange(s) or any clearing corporation, the entity can directly apply for approval to the concerned stock exchange or clearing corporation... The stock exchange/ clearing corporation shall report to SEBI about such grant of approval.

if any entity is already registered with SEBI as a clearing member in any clearing corporation, then for operating in any other clearing corporation(s) or any stock exchange, the entity shall follow the procedure as prescribed in Clause 2b above.

entity shall continue to be liable to pay fees for each segment approved by the stock exchange or clearing corporation, as per the Schedule to the Brokers Regulations.

stock exchange or clearing corporation shall grant approval... after exercising due diligence and on being satisfied about the compliance of all relevant eligibility requirements.

The applicant, its directors, proprietor, partners and associates satisfy the Fit and Proper Criteria as defined in the SEBI (Intermediaries) Regulations, 2008;

The applicant has taken satisfactory corrective steps to rectify the deficiencies or irregularities observed in the past in actions initiated/ taken by SEBI/ stock exchanges(s) or other regulators.

Recovery of all pending fees/ dues payable to SEBI, stock exchange and clearing corporation;

The stock exchange(s) and clearing corporation(s) shall coordinate and share information with one another, about their members.

bring the provisions of this circular to the notice of the Stock Brokers, Proprietary Trading Members, Self Clearing members and Clearing members as the case may be, and also disseminate the same on their websites;

make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in co-ordination with one another;

Source: SecMarx — Single registration for Stock Brokers & Clearing Members. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.