Sebi notifies new stock broker regulations after over three decades

After over three decades, the Securities and Exchange Board of India (Sebi) has revised the stock broker regulations, with reforms on compliance.

 

Following Sebi board approval last month, the Stock Broker Regulations, 2026, have now been notified, replacing the norms set in 1992.

 

Under the new regulations, stock brokers have been allowed to undertake additional activities regulated by other financial sector authorities. Brokers may also provide incidental investment advice to their broking clients.

 

Further, stock brokers have also been allowed to act as underwriters out of their own net worth or funds, albeit with several conditions.

 

However, the definition of algorithmic trading, which was proposed in the consultation paper, is not included in the final notification. 

Sebi smoothens digital signature feature for FPIs

 

The market regulator on Thursday announced a new facility for foreign portfolio investors (FPIs) for easier onboarding through digital signature certificates (DSCs) via the common application form.

 

“This new feature embeds the FPI registration application and DSC application into a single, unified process, easing the onboarding of FPI clients,” the Securities and Exchange Board of India (Sebi) noted.

 

FPIs were permitted in 2023 to use digital signatures for registration-related documents. The new feature streamlines the FPI registration process, as FPIs can now directly apply for a DSC while submitting the common application form.