Page 3 - Brokers

Result preview: India Inc's show likely to fail to dazzle in Q2FY24

Brokerages see profit growth at 19.6%, slower than Q1

Market regulator Sebi sets deposit norms for execution-only platforms

Entities already registered with the stock exchange under any of the segments will not have to pay the deposit again

Sebi asks brokers functioning in EOP to maintain minimum capital deposit

Capital markets regulator Sebi on Friday asked stock brokers functioning only in the Execution Only Platforms (EOP) segment to maintain a sum of Rs 10 lakh with the bourse as a base minimum capital deposit. The EOP is a digital or online platform which allows transactions in direct plans of mutual funds without the help of distributors. Under the rule, an entity desirous of providing execution-only services in direct plans of mutual funds can obtain registration under either of the two categories -- category 1 EOP as an agent of asset management companies registered with industry body Association of Mutual Funds in India (AMFI) or category 2 EOP as an agent of investor, registered as a stock broker. "It has been decided that the members of stock exchanges functioning only in EOP segment (Category 2 EOP) shall maintain a sum of Rs 10 lakh with the stock exchange as BMC (base minimum capital) deposit," the regulator said in a circular. However, for members having registration of more

In the battle of brokerages, traditional brokers are fighting back

Discount brokers have sustained the rise of the equity cult and gained market share. Now the old guard looks to strike back

Reduce uncertainties of home purchase with a competent, professional broker

Professional certification and experience can boost the odds of finding the right individual

In MFs' trading expense revamp, AMCs, brokerages see Rs 3.5k-cr blow

Inclusion of brokerage or trading costs in the TER will put AMCs in a catch-22 situation as the greater the churn in portfolios, the lower the profit margins will be

Brokers body seeks three-month extension from Sebi for KYC validation

The Sebi circular had given KYC Registration Agencies (KRAs) a timeline of 180 days, ending on April 30, 2023, to validate client KYCs

Sebi bans brokers from creating bank guarantees on clients' funds

Capital markets regulator Sebi on Tuesday prohibited stock brokers and clearing members from creating new bank guarantees on clients' funds beginning May 1 and directed them to wind down all existing bank guarantees by September-end. This is part of Sebi's effort to curb the possible misuse of investors' money by stock brokers. At present, stock brokers (SBs) and clearing members (CMs) pledge client's funds with banks which in turn issue Bank Guarantees (BGs) to clearing corporations for higher amounts. This implicit leverage exposes the market and especially the client's funds to risks. "Beginning May 1, 2023, no new BGs shall be created out of clients' funds by SBs/CMs. Existing BGs created out of clients' funds shall be wound down by September 30, 2023," Sebi said in a circular. The framework will not be applicable for proprietary funds of stock brokers and clearing members in any segment and SB's proprietary funds deposited with CM in the capacity of a client. In addition, the

National Stock Exchange issues framework for appointing forensic auditor

The auditors will be required to submit the quotations within five working days

Discount brokers take giant strides; now account for 57% of active clients

The majority of incremental customer acquisition is now happening from tier-2 cities

Exchanges designate 15 stock brokers as QSBs with enhanced obligations

Additional responsibilities are in areas of financial stability, audit, related-party transaction, cyber security, risk management; enhanced monitoring of these QSBs to start on July 1

Sebi asks brokers, depositories to maintain websites to bring transparency

With an aim to bring in transparency, capital markets regulator Sebi on Thursday mandated all stock brokers and depositories to maintain websites. A designated website brings in transparency and helps the investors to keep themselves well informed about the various activities of the Stock broker (SB) and Depository participant (DP). In view of the same, considering the advancement in technology and need to provide better services to the investors, all SBs and DPs have been mandated to maintain a designated website, Sebi said in a circular. Such website would mandatorily display information such as basic details of the SB/DP such as registration number, registered address of head office and branches and names and contact details such as E-mail IDs etc of all key managerial personnel, including compliance officer. In addition, such website is required to display step-by-step procedures for opening an account, filing a complaint on a designated E-mail ID, and finding out the status of

Tightening the grip: Sebi's daily transfer diktat to further pinch brokers

In a new paper, Sebi has proposed the daily transfer of client funds to clearing corporations

High-frequency traders must be highly cost-conscious while choosing brokers

Platform reliability, time to meet margin calls are other key criteria for traders while selecting a broker

Brokers fret as secondary market ASBA gains motion with new UPI feature

They are staring at a 15-20% drop in the revenues they make from interest on the surplus funds clients park with them. Something similar had played out when ASBA was launched for IPOs

Settlement scheme to be extended for 150 brokers from December 19

The scheme ends on January 19, 2023; terms and conditions will be made available on date of commencement

"Differentiated offerings should be the criteria for selecting a broker"

In this interview with Sanjay Kumar Singh, Associate Editor, Business Standard, Tejas Khoday, chief executive officer and co-founder, Fyers, dwells at length on the criteria you should apply while selecting a broker.

Funds mismatch under new settlement process may invite stricter Sebi norms

According to the new mandate, stock market brokers are required to transfer unused funds back to the client's account at least once each quarter

Running accounts Settlement: New Sebi guidelines in motion from Friday

However, industry experts feel that with tighter rules, brokerages will need to have higher working capital and will involve operational risk of transferring large amounts

Sebi working on new ASBA-like payment system for secondary trades: Buch

Sebi's planned move could upend Rs 30,000-crore broking industry