What are SEBI's new ease-of-doing-business measures for stock exchanges?

SEBI is proposing to shift deal disclosures to PAN level and consolidate trading rules to reduce compliance burdens and enhance operational autonomy for exchanges.

How will SEBI's proposed changes affect smaller brokers?

The increased net-worth requirement for margin trading facilities could accelerate consolidation among smaller brokers who may need to infuse capital or exit the business.

What is the impact of SEBI's Liquidity Enhancement Scheme changes?

Exchanges will have greater discretion to design incentives, allowing them to compete more effectively for liquidity, particularly in new or emerging market segments.

Home / Business and Economy / SEBI's Broker Reforms: Easier Compliance, Tougher Consolidation

SEBI's Broker Reforms: Easier Compliance, Tougher Consolidation

11 Jan

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Summary

SEBI shifts deal disclosures from broker level to PAN level.
Net-worth for margin trading brokers rises to ₹5 crore from ₹3 crore.
Exchanges gain discretion to design liquidity enhancement incentives.

SEBI's Broker Reforms: Easier Compliance, Tougher Consolidation

The Securities and Exchange Board of India (SEBI) has proposed significant reforms aimed at improving ease of doing business for stock and commodity exchanges. These measures are poised to streamline daily compliance for brokers and grant exchanges more operational freedom, potentially intensifying market competition. A key change involves shifting the reporting of bulk and block deal disclosures from the Unique Client Code (UCC) level to the PAN level, automating a compliance task for brokers and allowing direct dissemination by exchanges.

Broader consolidation of trading rules across equities, derivatives, and commodities is anticipated to reduce overall compliance efforts by eliminating repetitive tasks and overlaps. However, a notable impact on smaller intermediaries is expected from the proposed increase in the minimum net-worth requirement for brokers offering margin trading facilities, raising it from ₹3 crore to ₹5 crore. This adjustment may prompt consolidation or strategic realignments among mid-sized brokers.