What are Sebi's new rules on technical glitches for stockbrokers?

Sebi has revised its technical glitch framework to ease compliance, exempting most small brokers and clarifying reporting requirements for system issues.

How many stockbrokers are affected by Sebi's revised glitch rules?

The revised framework is expected to exempt nearly 60% of stockbrokers, primarily those with fewer than 10,000 clients.

What changes did Sebi make to technical glitch reporting?

Sebi extended reporting time to two hours, introduced a single reporting platform, and excluded glitches originating outside a broker's system.

Home / Business and Economy / Sebi Eases Compliance for Small Brokers

Sebi Eases Compliance for Small Brokers

9 Jan

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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.