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SEBI Eyes Village Growth for Retail Broking Boom
24 Oct
Summary
- SEBI urges brokers to build trust by guiding clients on needs.
- Cybersecurity must be a business priority for brokers.
- SEBI plans simpler rules, deeper markets, and tech use.
India's retail broking sector is poised for significant growth, with SEBI Chairman Tuhin Kanta Pandey emphasizing the vital contribution of towns and villages. He urged brokers to build investor trust not just through trade execution, but by understanding client needs and risk appetites. This client-centric approach is seen as key to encouraging wiser, longer-term investments.
Pandey also addressed the growing influence of unregistered advisors and finfluencers, encouraging brokers to use their client interactions to disseminate verified information and warn against potential frauds. The imperative of robust cybersecurity was underscored, with brokers advised to treat it as a business priority and regularly test their systems against cyber-attacks.
Looking ahead, SEBI is committed to shaping market evolution through simplified regulations, enhanced market depth, and the responsible integration of technology. Key initiatives include graded compliance for brokers, improving securities lending and borrowing mechanisms for better liquidity, developing a market-making framework for bonds, and finalizing guidelines for the ethical use of artificial intelligence.
