Business Standard

Sebi may prescribe higher net-worth needs for qualified stockbrokers

Regulator's approach being looked at as similar to one of different layers of NBFCs specified by RBI

File photo: PTI
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File photo: PTI

Khusbhoo Tiwari Mumbai
The Securities and Exchange Board of India (Sebi) may prescribe higher net-worth requirements among other parameters for qualified stockbrokers (QSBs) who handle a substantial number of clients, funds, and trading volumes.

The Sebi board has decided that QSBs will need to comply with enhanced risk management requirements and will be under enhanced monitoring by the regulator and market infrastructure institutions.

According to Sebi, 16 brokers will fall under QSB parameters that will be issued separately.

 “If a broker is handling daily heavy volumes and a lot of client funds, he must also have capital in proportion to operate in it.

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