 "The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai (Photo: Reuters)")
The Securities and Exchange Board of India (Sebi) has stepped up supervision of stockbrokers to check fund diversion.
The regulator on Monday outlined the criteria for annual inspection of stockbrokers and members of clearing corporations. The move is part of Sebi’s efforts to move towards a risk-based model of supervision of all stockbrokers.
According to Sebi, the top 25 stockbrokers in terms of investor complaints and arbitration cases filed by investors would face inspection, irrespective of whether they have been inspected earlier or not. Those with adverse observations in the internal audit reports on high-risk issues such as wrong reporting of margins,
