The Securities and Exchange Board of India, (SEBI) on May 30, 2024, issued a circular relating to Ease of Doing Business – Internet Based Trading for Stock Brokers.
SEBI has announced changes to improve ease of doing business and remove obsolete compliance requirements for Market Infrastructure Institutions (MIIs), specifically related to Internet-Based Trading (IBT). Key decisions include:
Faster Approval for IBT Service:
•Brokers must apply to their respective stock exchanges for formal permission to provide IBT services.
•The approval timeline has been reduced from 30 days to 7 days.
Simplified Reporting for IBT Statistics:
•Previously, brokers had to confirm IBT trade statistics before publication by stock exchanges periodically.
•Now, exchanges will publish IBT statistics directly based on the details of IBT terminals provided by brokers.
•Exchanges can obtain necessary information or declarations about IBT terminals from brokers as they see fit.
These changes aim to streamline processes and reduce the administrative burden on stock brokers.
[Notification No. SEBI/HO/MRD/TPD-1/P/CIR/2024/68]
