Sebi Rethinks Penalty Stigma in Broking Industry

K C Varshney, a whole-time member of Sebi, addressed the stigma linked to the term 'penalty' in the broking industry and suggested a name change. He spoke about efforts to rationalize penalties during an event unveiling proxy advisory recommendations in investor apps.

Varshney mentioned ongoing discussions within the industry, aiming to ease business challenges over the past five months. A recent meeting with brokers, NSE, and Sebi officials in New Delhi reached a consensus on disputed issues, promising imminent announcements.

Part of these efforts includes naming a single exchange as the nodal authority for penalties and creating a centralized data-sharing portal for brokers. The move is part of a larger collaboration with the Finance Ministry to improve ease of doing business in the broking sector.

(With inputs from agencies.)