Sebi Proposes New Net Worth Calculation for Stock Brokers
Sebi has proposed a new methodology for calculating stock brokers' variable net worth by linking it to client balances and active clients. The revision aims to align capital requirements with operational risks and ensure brokers have adequate financial buffers. Public comments are invited till May 15.
- Country:
- India
In a bid to better align capital requirements with operational risks, the Securities and Exchange Board of India (Sebi) has proposed a revised method for calculating stock brokers' variable net worth.
This shift in approach aims to link the calculation with client balances and the number of active clients, addressing the deficiencies of the current methodology introduced last year.
Public comments on the proposal, which seeks to enhance the financial buffer for brokers, are invited until May 15. The revision is part of Sebi's comprehensive risk management framework to protect investor interests.
(With inputs from agencies.)
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