The Securities and Exchange Board of India (SEBI) on July 29, 2023, issued a Press release regarding considering simplification of the process of onboarding clients by the adoption of a risk-based approach
The following has been stated namely: -
• This has a reference to the SEBI Circular dated December 03, 2009 (now incorporated under Master Circular for Stock Brokers dated May 17, 2023), which prescribes that the stock broker shall have documentary evidence of financial capability for all clients.
• It states that SEBI is at an early stage of evaluating if the aforesaid circular can be made applicable based on the risk assessment of the clients. This would promote ease of compliance for brokers and investors
• It further states that the SEBI’s focus has always been on adequate risk management while ensuring ease of doing business and compliance, rather than on placing any curbs on trading. It is reiterated that proposals that result in any change in the regulatory framework, go through a process of comprehensive consultation with all stakeholders including the public, before any decision is taken by the Board.
[Press Release 14/2023]
