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Sebi Eases Compliance for Small Brokers
9 Jan
Summary
- Sebi revised technical glitch framework, exempting nearly 60% of brokers.
- Glitches outside broker control or with negligible impact are now excluded.
- Reporting timelines extended to two hours, simplified via a single platform.
The Securities and Exchange Board of India (Sebi) has updated its framework for technical glitches, aiming to simplify compliance for market participants. A significant revision narrows the scope, exempting stockbrokers with fewer than 10,000 clients, which is estimated to free up nearly 60% of brokers from these obligations.
Further clarity has been provided, excluding issues originating outside a broker's system or those with negligible impact on trading functionality. This change offers brokers greater protection from penalties for events beyond their immediate control, ensuring a focus on core trading services.
Reporting requirements have also been made more efficient. Brokers now have a two-hour window to report glitches, accounting for trading holidays. A unified reporting platform replaces the need for multiple submissions, streamlining the process and rationalizing technology compliance obligations based on broker size and reliance.
