Master Circular for Stock Brokers
Summary
This section introduces the Master Circular for Stock Brokers, consolidating previous circulars issued by SEBI. It explicitly supersedes the Master Circular dated June 01, 2018, and rescinds specific subsequent circulars listed in an appendix. The document establishes transition rules ensuring that actions taken under rescinded circulars remain valid under this new framework. This section outlines additional regulatory requirements for internet-based trading, wireless technology usage, and algorithmic trading systems. It establishes frameworks for cyber security, cloud services adoption, and the handling of technical glitches by stock brokers. The text further details provisions regarding changes in control, investor grievance redressal, default management procedures, and various reporting obligations. This section outlines the procedural requirements for stock broker registration, including antecedent verification and document validity norms. It details specific conditions for converting individual memberships to corporate entities and handling mergers or amalgamations of trading members. The text also lists various annexures and abbreviations relevant to regulatory compliance and
Text
In order to enable the users to have access to the provisions of the applicable circulars at one place, this Master Circular in respect of Stock Brokers has been prepared.
the instant Master Circular has been prepared which supersedes the Master Circular for Stock Brokers dated June 01, 2018 and the subsequent circulars on the subject.
With the issuance of this Master Circular, the directions/instructions contained in the circulars listed out in the Appendix to this Master Circular, to the extent they relate to the Stock Brokers, shall stand rescinded.
anything done or any action taken or purported to have been done or taken under the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular;
any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular;
the previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars... shall remain unaffected as if the rescinded circulars have never been rescinded;
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992.
Additional Requirements for Internet Based Trading (IBT) and Securities trading using Wireless Technology (STWT)
Direct Market Access facility
Smart Order Routing
Broad Guidelines on Algorithmic Trading
Testing of Software used in or related to Trading and Risk Management Safeguards to avoid trading disruption in case of failure of software vendor
You have read the preview. Create a free account to read the full document and see every order that applied it.
Free accounts include 10 searches/day with full text access.
Source: SecMarx — Master Circular for Stock Brokers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.