India’s SEBI considers scaling broker rules to business risks
India’s securities regulator is considering compliance requirements that reflect stockbrokers’ business scale, client exposure and reliance on technology. Chairman Tuhin Kanta Pandey outlined the approach in Mumbai alongside work on digital inspections, trading-terminal safeguards and corporate-bond liquidity. The measures are at different stages of review, testing and preparation, with investor protection remaining an explicit objective.
Economics & Markets··Morning
Broker requirements would reflect business scale
The Securities and Exchange Board of India, the country’s capital-markets regulator known as SEBI, is exploring a graded compliance framework for stockbrokers. Chairman Tuhin Kanta Pandey outlined the proposal at a convention of India’s exchange members in Mumbai. Business scale, client exposure and dependence on technology would influence the requirements applied to each broker.[1], [2]
SEBI is also reviewing rules for depository participants and safeguards against the misuse of trading terminals. Its inspection portals are being brought into a unified digital workflow. The regulator wants supervision to become more consistent while reducing the burden of regulatory processes on market intermediaries.[1]
Settlement changes aim to free blocked funds
The regulator is considering extending automated transaction-transfer arrangements to custodial clients in the cash market, including portfolio management services and alternative investment funds. The objective is to reduce funds blocked while custodians confirm transactions. Short selling and securities lending rules are also under review, alongside the costs of parallel clearing arrangements for share transactions.[1]
Bond trading and AI safeguards remain on the agenda
SEBI is developing market-making arrangements for corporate bonds and exploring a controlled testing environment for artificial intelligence. Responsible-use guidance would include accountability, data controls, emergency shutdown mechanisms and human oversight. A pilot for tokenised corporate bonds began with India’s central bank in September. Pandey presented initiatives at different stages, from ongoing trials to proposals still being examined.[1]
