SEBI Consultation Paper: Lighter Reporting for Brokers
Why in the news
SEBI floated a consultation paper to reduce the reporting load on brokers that double as primary dealers, for ease of doing business.
| Broker type | Accounts reported |
|---|---|
| Ordinary broker today | All bank and demat accounts |
| Also a bank | Only accounts used for stockbroking |
| Also a primary dealer (proposed) | Same relief |
Background
- The Master Circular for Stock Brokers (17 June 2025) required clear naming of accounts and reporting of openings and closures to exchanges.
- Institutions then flagged operational overlaps for multi-function firms.
Exam angle
- A consultation paper is a proposal, not a final rule.