Home / Business and Economy / Sebi Overhauls Stockbroker Rules, Eases Business
Sebi Overhauls Stockbroker Rules, Eases Business
8 Jan
Summary
- Sebi replaced 1992 regulations with new SB Regulations 2026.
- Brokers can now operate under other financial regulators.
- Rules simplified language, removed outdated provisions, and clarified definitions.
The Securities and Exchange Board of India (Sebi) has enacted a significant overhaul of its stockbroker regulations, introducing the Sebi (Stock Brokers) Regulations 2026, which replace the previous rules from 1992. This comprehensive update is designed to simplify compliance and foster an easier business environment for stockbrokers across the nation.
A key change allows stockbrokers to operate under the regulatory frameworks of other financial authorities. This move offers greater flexibility and reduces redundant oversight. The new regulations have been restructured into eleven chapters, simplifying language, removing obsolete clauses, and introducing clearer definitions for terms like 'proprietary trading'.
Further enhancements include provisions for joint inspections and the allowance of electronic record-keeping. Sebi has also rationalized criteria for identifying qualified stockbrokers and revised reporting obligations, reinforcing the role of stock exchanges as frontline regulators. The consolidation and re-arrangement of sections have reduced the total page count from 59 to 29, significantly improving readability.
