Revamping Broker Regulations: A Step Forward in Ease of Business

The Department of Economic Affairs, under the Ministry of Finance, has amended Rule 8 of the Securities Contracts (Regulation) Rules (SCRR), 1957. This change, formalized through Gazette Notification G.S.R. 318(E), aims to enhance regulatory clarity and streamline the business operations of brokers.

Responding to stakeholders' concerns, the Department issued a Consultation Paper in September 2024, seeking feedback on the rules causing contention. With the financial sector's growth and the evolving nature of brokers' operations, a review was deemed essential to ensure rules are supportive rather than restrictive.

The finance ministry stated that the amendment reflects extensive stakeholder feedback and aligns with the government's broader goal of easing business operations in the financial sector. The reform intends to sustain the development of India's capital markets while maintaining transparency and regulation. (ANI)

(With inputs from agencies.)