Simplification of registration requirements for Stock Brokers
Summary
This circular amends registration requirements for stock brokers to allow a single registration per exchange or clearing corporation instead of multiple segment-specific registrations. It outlines procedures for new entities and existing registrants seeking approval for additional segments directly from the respective exchanges or corporations. The document mandates due diligence, fit and proper criteria checks, and fee payments while directing exchanges to update their bye-laws and report implementation status.
Text
existing practice of obtaining multiple registrations for operating in different segments... has been done away with and instead a single registration per stock exchange / clearing corporation shall be required.
If a new entity intends to register as a stock broker or clearing member... then the entity shall apply to SEBI through the respective stock exchange or clearing corporation... in any one segment.
If an entity is already registered with SEBI in any segment... then for operating in any other segment... the entity need not apply to SEBI. The entity can directly apply to the concerned stock exchange or clearing corporation...
if any entity is already registered with SEBI in any segment of the clearing corporation, then for operating in any other segment... or for operating in the stock exchange... the entity shall follow the procedure as prescribed in Clause 2b above.
Fees shall be applicable for all the stock brokers... As per current practice, the entity shall continue to be liable to pay fees for each additional segment approved by the stock exchange or clearing corporation...
The stock exchange or clearing corporation shall grant approval for any additional segment... 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 stock exchange or clearing corporation shall satisfy itself that the applicant has taken corrective steps to rectify the deficiencies or irregularities observed in the past.
Recover all pending fees / dues payable to SEBI and / or stock exchange.
bring the provisions of this circular to the notice of the Stock Brokers... 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;
communicate to SEBI, the status of the implementation of the provisions of this circular through Monthly Development Report of the following month.
Source: SecMarx — Simplification of registration requirements for Stock Brokers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.