Sebi Proposes New Framework to Streamline Compliance for Stock Brokers

The Securities and Exchange Board of India (Sebi) has put forward proposals to redefine technical glitches within stock brokers' systems in an effort to ease regulatory compliance.

Under the new framework, Sebi suggests excluding glitches that occur outside trading hours or are outside brokers' control from financial disincentives. This change targets only brokers with over 10,000 clients using advanced trading platforms.

Sebi's proposals include improved transparency, mandating timely communication of system issues via a common portal, and detailed reports. Public feedback is invited on the changes until October 12.