Master Circular for Stock Brokers
Summary
This section introduces the Master Circular for Stock Brokers, superseding the previous version dated August 09, 2024. It rescinds specific prior circulars listed in the Appendix while preserving rights and liabilities accrued under them. The circular is issued under Section 11(1) of the SEBI Act to regulate securities markets and protect investors. This section outlines regulatory requirements for securities trading technologies, including wireless access, algorithmic trading, and cyber security frameworks. It details procedural guidelines for changes in broker status, control, and affiliation, alongside provisions for foreign account tax compliance. The text further establishes investor grievance redressal mechanisms, default management procedures, and miscellaneous operational standards for stock brokers. This section outlines the procedural requirements for stock broker registration, including antecedent verification and document validity. It details specific conditions for converting individual membership to corporate status and handling mergers or amalgamations of trading members. Additionally, it establishes norms for processing applications related to name changes and fee c
Text
The instant master circular supersedes the Master Circular for Stock Brokers dated August 09, 2024.
With the issuance of this Master Circular, the directions/instructions contained in the circulars listed out at Sr. nos.119-130 in the Appendix... shall stand rescinded.
Anything done or any action taken or purported to have been done or taken under the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular.
Any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular.
The previous operation of the rescinded circulars... any right, privilege, obligation or liability acquired... any penalty... or any investigation... shall remain unaffected as if the rescinded circulars have never been rescinded.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 read with Regulation 30 of Chapter VII of SEBI (Stock Brokers) Regulations, 1992 and Regulation 51 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
Securities Trading using Wireless Technology
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 vendor
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Source: SecMarx — Master Circular for Stock Brokers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.