share Market regulator SEBI on Wednesday approved several important and major reforms in the rules related to stock brokers. Over three decades old rules have been changed to ease compliance and modernize the regulatory framework in line with changing market needs. The SEBI (Share Brokers) Regulations, 2025 were approved at a meeting of the Board of Directors of the Securities and Exchange Board of India (SEBI). SEBI issued a statement after the meeting, saying that the new regulations have simplified the regulatory language, removed outdated and unnecessary provisions and made definitions and reporting requirements more clear and streamlined.
The rules are divided into 11 chapters
Under the new rules, the rules are divided into 11 chapters covering all the major aspects related to stock brokers. SEBI has also removed many such schedules which were no longer needed. On the other hand, essential provisions have been included directly in the rules in the form of chapters, so that they can be easily understood. Additionally, provisions relating to underwriting, code of conduct and permitted activities of stock brokers have been unified and reorganized. The regulator has also amended important definitions like ‘clearing member’, ‘professional clearing member’, ‘proprietary trading’, and ‘designated director’.
SEBI gave permission for joint inspection
To ease the compliance of rules and increase ease of doing business, SEBI has allowed joint inspection and has also provided the facility to maintain books of accounts in electronic form. Additionally, the criteria for identification of eligible stock brokers have been rationalized so that entities with a large number of active clients or high trading volumes can be kept under strict surveillance.
Changes also made in reporting obligations
SEBI also said that the reporting obligations have been changed keeping in mind the role of stock exchanges as a first-line regulator. With this, old provisions related to physical delivery of shares, forward markets commission and sub-broker have been removed. SEBI said that in the new rules, the number of pages has been reduced from 59 to 29 and the number of words has also been reduced to almost half. These changes have been made after incorporating suggestions received from the public consultation process held in August.
Latest Business News