Government Revamps Securities Contract Rules for Broker Ease

The government has taken a decisive step towards easing business operations for stock brokers by amending the Securities Contract (Amendment) Rules. This move is designed to provide greater regulatory clarity, enhancing the ease of doing business, as confirmed by the finance ministry's announcement on Monday.

In light of the financial sector's expanding scale and interconnectedness, coupled with the evolving nature of brokers' businesses, the Department of Economic Affairs recognized the necessity of reviewing the safeguards within these rules. Their aim is to ensure that the original intent is achieved without stifling stakeholder activities.

The amendment follows considerable stakeholder feedback and forms a part of the government's strategic drive to bolster clarity and facilitate business in the financial sector. This, according to the ministry, will help market intermediaries continue supporting India's capital markets in a well-regulated and transparent environment.

(With inputs from agencies.)