SEBI-No requirement for separate or multiple registrations for stock brokers/clearing members approved by concerned Stock Exchanges/Clearing Corporations

SEBI has made amendments to Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992.  The amended regulations are called, Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2014.The notification No. LAD-NRO/GN/2014-15/15/1671 dated 08-10-2014 contains the amended regulations.

As per the amended regulation, the following major amendments have been made to the existing regulation:

No separate registration required for SEBI registered;

(a)   Clearing member to act as a Stock broker in a stock exchange of which he is admitted as a member, or

(b)   Stock broker to operate in more than one stock exchange of which he is admitted as a member.

(c)   Stock broker to act as a clearing member in a clearing corporation of which he is admitted as a member

(d)   Clearing member to operate in more than one clearing corporation, of which he is admitted as a member.

However both the exceptions (a) and (b) above are subject to the approval by the concerned stock exchange/clearing corporation as the case may be.

Further, Regulation 10 and 10D have also been accordingly substituted  which are related to the Approval for operation in other stock exchange(s)/clearing corporation(s) or segment(s) of stock exchange/ clearing corporations.

The substituted regulation 10(3)/10D(3)provides that on receipt of an application, the stock exchange/clearing corporation shall, if satisfied with the compliance of provisions of the regulations and other relevant eligibility requirements specified by the Board, grant approval to operate in that stock exchange or segment(s) thereof and shall inform the Board about such grant of approval.

Further the Form-D related to certificate of registration as stock broker/ proprietary trading member/ clearing member has also been substituted by the following new Form-D

 

FORM D
[Regulations 6 and 10B]

CERTIFICATE OF REGISTRATION

In exercise of the powers conferred by sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992, read with the rules and regulations made thereunder, the Board hereby grants a certificate of registration to...................................................................... as a stock broker/ proprietary trading member/ clearing member for carrying on the activities of buying, selling or dealing in securities/ clearing and settlement of trades and for carrying on such other activities as are permitted by stock exchange(s)/ clearing corporation(s), subject to the conditions specified therefor, from time to time, by the Board.

Registration number allotted is as under: ....................................................................

This certificate shall be valid till it is suspended or cancelled in accordance with the Regulations.

Date : ................................

 

By order
For and on behalf of Securities and Exchange Board of India”

 

U.K. SINHA
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA

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Download SEBI Circular to Stck Exchanges/Clearing Corporations Click Here >>