UPSE brokers want SEBI core committee recommendations scrapped

Uttar Pradesh Stock Exchange Brokers Association (UPSEBA) has urged Prime Minister Manmohan Singh to facilitate the scrapping of the Securities and Exchange Board of India (SEBI) core committee recommendations.

In a letter to the prime minister, the Association said if these recommendations were implemented by the stock market regulator, it would imperil the existence of 24 regional stock exchanges (RSE) and small brokers in the country.

These recommendations are — regional stock exchanges should have minimum net worth of Rs 50 lakh from Rs 10 lakh at present; only body corporate be allowed to operate in the market; and sub-brokers be discontinued.

Earlier also, Kanpur-based UPSEBA had written to the PM, finance minister and SEBI on the issue.

“The SEBI core committee recommendations are against the spirit of the Indian Constitution, which guarantees right to livelihood,” UPSEBA president Sushil Kumar Kanodia told Business Standard.

He reiterated that the core committee had only boosted the ‘monopoly’ of few big broking houses, and it did not have any representation of RSEs and small brokers.

Formed in 2008, the core committee comprising 18 representatives of stock exchanges, depositories, broking industries, legal experts was divided in 4 sub-groups.