Sebi tweaks supervisory framework for stock brokers

November 30
06:48 2017

Sebi today asked bourses to ensure that brokers provide details about securities pledged by a client as well as funds raised by way of pledging.

The move is part of efforts to strengthen supervision framework for stock brokers.

In a circular, Sebi has asked bourses to put in place a framework and ensure that brokers upload “ISIN wise number of securities pledged, if any, and funds raised from the pledging of such securities and consolidated number of securities pledged, if any, and the funds raised from the pledging of such securities” on a monthly basis.

The requisite information for each client has to be uploaded on to the system of the exchange where the broker is a member.

Currently, only consolidated information was required in this regard.

ISIN (International Securities Identification Numbers) code, which has 12 characters, is used for uniquely identifying securities like stocks, bonds warrants and commercial papers.

To ensure more transparency, brokers should also furnish day-wise ISIN details on a standalone as well as consolidated basis on the last trading day of the month.

The regulator said that exchange would forward these information to clients through email, while consolidated information will be sent through SMS.

These provisions will be applicable one month from the date of this circular.

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