Home / Business and Economy / Sebi Eases Broker Reporting Rules for Banks & Primary Dealers
Sebi Eases Broker Reporting Rules for Banks & Primary Dealers
13 Feb
Summary
- Sebi proposes relaxing reporting norms for stockbrokers.
- Exemptions extended to primary dealers to improve ease of business.
- Changes align primary dealers' treatment with that of banks.
The Securities and Exchange Board of India (Sebi) has issued a consultation paper proposing relaxed reporting norms for stockbrokers. These changes are intended to enhance the ease of doing business within the financial sector.
Sebi seeks to ease requirements related to the naming, tagging, and reporting of bank and demat accounts held by stockbrokers. These proposed relaxations extend exemptions to entities that function as primary dealers.
This initiative builds upon Sebi's Master Circular for Stock Brokers from June 17, 2025, which mandated clearer account nomenclature and reporting. Previously, brokers had to tag all demat accounts and report bank and demat accounts to exchanges.
Under the current framework, brokers that are also banks receive some relief, needing to report only accounts used for stock broking. The new proposal aims to grant similar relief to stockbrokers that are primary dealers.
Demat accounts used solely for non-broking activities by primary dealers would be exempt from tagging. Furthermore, both bank and primary dealer brokers would only report bank accounts utilized for stock-broking activities.
