India markets watchdog exempts small brokers from technical glitch rules
- As a result of new eligibility criteria, approximately 60% of stock brokers would be moving out of this framework, SEBI said
India’s markets regulator on Friday eased compliance requirements and exempted smaller brokers from rules for technical glitches at brokerages.
The Securities and Exchange Board of India (SEBI) said the streamlined framework will exclude stock brokers with fewer than 10,000 registered clients from compliance. These brokers will now be exempt from paying penalties or reporting requirements in case of technical glitches.
“As a result of new eligibility criteria, approximately 60% of stock brokers would be moving out of this framework,” SEBI said.
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The regulator also added that glitches that do not impact trading activity will also be exempt from the framework.
The changes, which were introduced after consultations with stakeholders, are the latest in a series of steps to ease regulations and reduce the compliance burden on market participants while encouraging broader participation in the capital markets.
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