Mumbai, Aug 13
The Securities and Exchange Board of India (SEBI) on Wednesday proposed several changes to update stock broker regulations, including a clear definition for “algorithmic trading.”
The proposal comes from a working group that included representatives from stock exchanges, brokers, legal experts, academicians, and investor associations.
The review aimed to simplify regulatory language, remove inconsistencies, eliminate outdated provisions, and incorporate changes in market practices.
Currently, PCMs are not allowed to have “trading rights” in the exchange where they are registered, but the meaning of this term has caused confusion.
SEBI wants to clarify that while PCMs cannot engage in trading activity in that exchange, they can still have trading rights as investors.
Another proposed change relates to the turnover calculation of stock brokers operating through subsidiaries that are registered on other exchanges.
SEBI has recommended that such turnover should be excluded from the subsidiary’s turnover only if the broker has paid turnover-based fees for five years, along with fees for an additional five-year block, to the relevant exchange.
The regulator is inviting public comments on these proposals until September 3