Sebi may rationalise penalties on brokers, says WTM Kamlesh Varshney

Sebi's Kamlesh Varshney says penalty rationalisation for brokers is likely soon and that a common reporting portal and designated exchange for penalties are under review

The market regulator is planning to rationalise the penalties it imposes on market intermediaries, said Kamlesh Varshney, Whole-Time Member of the Securities and Exchange Board of India (Sebi). Varshney was speaking at an event to launch a new feature in the investor apps of Central Depository Services (CDSL) and National Securities Depository (NSDL).

 

Varshney said many such actions are wrongly labelled as penalties, leading to an unnecessary stigma for brokers on whom these are imposed.

 

The Sebi official noted that the first phase of rationalisation should happen very soon.

 

The regulator is also consulting market institutions on the possibility of creating a common reporting portal.

 

‘Instead of brokers reporting their transactions at different exchanges, can we have a common portal? That work is also in progress and will enable brokers to do their business in a much more efficient manner,’ Varshney said.

 

Additionally, the regulator is considering designating one exchange to be responsible for imposing penalties.