Sebi Implements Unified Annual Inspections for Stock Brokers, DPs
Sebi mandates a unified annual inspection for stock brokers and depository participants, streamlining processes by involving all market infrastructure institutions collectively. This new procedure aims to reduce redundant inspections, saving time and resources. It emphasizes the importance of efficient oversight in high-risk entities and enhances information sharing between institutions.
- Country:
- India
The Securities and Exchange Board of India (Sebi) announced a significant reform on Thursday, mandating unified inspections for stock brokers and depository participants (DPs). This overhaul replaces the previous practice where these entities underwent separate examinations by each market infrastructure institution (MII), such as stock exchanges, depositories, and clearing corporations.
This unified approach aims to address the burden placed on intermediaries by reducing redundant inspections that disrupt routine operations. It requires entities selected for inspections to be evaluated across all their segments, including any DP or clearing operations, by the collective institutions involved.
Sebi has revised criteria for inspections, focusing on high-risk entities and those with high investor complaints. The initiative underscores the regulator's commitment to improving market efficiency and oversight while minimizing unnecessary resource allocation.
(With inputs from agencies.)
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