Securities and
Exchange Board of India (SEBI)
CIRCULAR
CIR/ MIRSD/ 4/ 2014
October 13, 2014
All recognized Stock
Exchanges and Clearing Corporations
Dear Sir / Madam,
Subject: Single
registration for Stock Brokers & Clearing Members.
(1). Please find
enclosed the Notification No. LAD-NRO/GN/2014-15/15/1671 dated
October 08, 2014
amending the SEBI (Stock Brokers and Sub-Brokers) Regulations,
1992 (hereinafter
referred to as Broker Regulations).
As per the amendment,
the existing requirement of obtaining
registration as stock broker / clearing member for
each stock exchange /
clearing corporation has been done away with and instead a
single registration
with any stock exchange / clearing corporation shall be required.
For operating in any other stock exchange(s) /
clearing corporation(s), approval will be
required from the
concerned stock exchange or / clearing corporation.
(2). For the purpose
of implementing the revised registration requirements, the following
guidelines are being
issued:
(a). If a new entity
desires to register as a stock broker or / clearing member with any
stock exchange or /
clearing corporation, as the case may be, then the entity shall apply to SEBI through the respective stock
exchange or / clearing corporation in the manner prescribed in the Broker
Regulations.
The entity shall be
issued one certificate of registration,
irrespective of the stock exchange(s)/ clearing corporation(s) or /
number of segment(s).
(b). If the entity is
already registered with SEBI as a stock broker with any stock exchange, then for operating on any other
stock exchange(s) /or any clearing corporation, the entity can directly apply
for approval to the concerned stock
exchange or / clearing corporation, as per the procedure
prescribed in the Broker Regulations for registration. The stock exchange / or
clearing corporation shall report to
SEBI about such grant of approval.
(c). Similarly, if
any entity is already registered with SEBI as a clearing member in any clearing corporation, then for operating in
any other clearing corporation(s) or / any
stock exchange, the entity shall follow the procedure as prescribed in
Clause 2b
above.
(d). Fees shall be
applicable for all the stock brokers, self clearing members and clearing members as per Schedule V of the
Broker Regulations. As per current
requirement, the entity shall continue to be liable to pay fees for each
segment
approved by the stock
exchange or clearing corporation, as per the Schedule to
the Brokers
Regulations.
(3). The stock
exchange or / clearing corporation shall grant approval for operating in any
segment(s) or /
additional segment(s) to the SEBI registered stock broker, self-clearing
member or / clearing
member, as the case may be, after exercising due diligence and
on being satisfied
about the compliance of all relevant eligibility requirements, and shall also, interalia ensure:
(a). The applicant,
its directors, proprietor, partners and associates satisfy the Fit &
Proper Criteria as
defined in the SEBI (Intermediaries) Regulations, 2008;
(b). The applicant
has taken satisfactory corrective steps to rectify the deficiencies or /
irregularities
observed in the past in actions initiated/ taken by SEBI / or stock exchanges(s) or / other regulators. The stock
exchange or clearing corporation may
also seek details whether the Board of the applicant is satisfied about
the steps
taken. They may also
carry out inspection, wherever considered appropriate; and
(c). Recovery of all
pending fees/ dues payable to SEBI, stock exchange and clearing
corporation;
(4.) The stock
exchange(s) and clearing corporation(s) shall coordinate and share
information with one
another, about their members.
(5). The Stock
Exchanges and Clearing Corporations are directed to –
(a). bring the
provisions of this circular to the notice of the Stock Brokers, Proprietary
Trading Members, Self
Clearing members & Clearing members as the case may
be, and also
disseminate the same on their websites;
(b). make necessary
amendments to the relevant bye-laws, rules and regulations for
the implementation of
the above decision in co-ordination with one another; and
(c). communicate to
SEBI, the status of the implementation of the provisions of this
circular through
Monthly Development Report of the following month.
6. This circular is
issued in exercise of powers conferred under Section 11(1) of the
Securities and
Exchange Board of India Act, 1992 and Regulation 29 & 30 of the SEBI
(Stock Brokers and
Sub-Brokers) Regulations, 1992 to protect the interests of
investors in
securities and to promote the development of, and to regulate the
securities markets.
A. S. Mithwani
Deputy General
Manager, SEBI
022-2644 9613
E - mail:
aliasgarm@sebi.gov.in
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