You are here: Home » Markets » News
Business Standard

Covid-19: Market brokers knock Sebi's door over confusion on office opening

Anmi has urged Sebi to explicitly declare brokers under essential services to enable them to work smoothly

Coronavirus | Sebi | Brokers

Dilip Kumar Jha  |  Mumbai 

In Mumbai, clarifications are issued to authorities to allow employees working in exchanges, broking offices from lockdown

Equity and commodity futures market have approached regulator Securities and Exchange Board of India (Sebi) over opening of their offices. While exchanges are open on Monday, in the major tier-2 cities and trading hubs like Indore are stuck as police don't allow them to open their own offices due to country-wide lockdown amid (Covid-19) scare.

State governments like Maharashtra, Gujarat and Rajasthan have already declared exchange industry services under essential category. Hence, opening of offices in these three states should not be a problem.

ALSO READ: Anmi asks Sebi to classify brokers as essential services amid virus scare

In a letter addressed to chairman Ajay Tyagi, brokers' association Anmi (Association of National Exchanges Members of India) has urged to explicitly declare under essential services to enable them to work smoothly.

ALSO READ: Coronavirus: MFs ask Sebi for more time in meeting debt scheme norms

In Mumbai, clarifications were issued to authorities to exclude employees working in exchanges, broking offices from lockdown. No such clarifications or guidelines are being issued by other state governments.

"All financial are integrated globally and India is playing a major part standing among the top 7 ranks globally in equity volumes. Hence equity and derivatives cannot be shut down while global exchanges/financial markets are active and working around the world. In this regard, Sebi/exchanges have permitted vide their circulars trading via terminals from various locations," said V Raghavendra Prasad, Chief Executive Officer, Anmi.

ALSO READ: Stock market rout: Is now the time to bottom fish large-cap stocks?

He added that this relaxation is taking care of front office staff of broking offices to work from home to 50 per cent of potential, however, staff serving back offices/servers/operational dependencies cannot be operated working from home. Thus, it is imperative to declare capital markets/stock broking services as essential services exempted from the lockdown.

"In view of the above, Anmi submits to your good offices to immediately issue a clarification to include “Stock Brokers and depository participants” as essential Services and advise all State Governments to issue clarification in this regard. Anmi request you to take a balanced view and decide on the future course of action," said Prasad.

First Published: Mon, March 23 2020. 11:47 IST