Stock brokers need to set up an institutional mechanism for prevention and detection of fraud or market abuse, the market regulator said in a circular.
The market regulator said stock brokers will follow the mechanisms prescribed in the broker regulations.
These mechanisms are to ensure "systems for monitoring trading activities and internal controls"; Responsibilities of stock brokers and employees; Escalation and Reporting Mechanism and Whistleblower Policy”.
Qualified stock brokerages (QSBs) will need to implement these mechanisms from August 1, while other brokerages will have to implement them between January 1, 2025, and April 1, 2026.
The circular said the implementation standards, including operational modalities, will be formulated by the Industry Standards Forum (ISF) of brokers in consultation with SEBI.
The market said the provisions of this circular will be implemented in a risk-based, sequential manner to ensure smooth adoption and effective implementation for all stock brokers by providing adequate time to stock brokers to make necessary changes depending on their size. Could. regulator.
The market regulator said stock brokers will follow the mechanisms prescribed in the broker regulations.
These mechanisms are to ensure "systems for monitoring trading activities and internal controls"; Responsibilities of stock brokers and employees; Escalation and Reporting Mechanism and Whistleblower Policy”.
Qualified stock brokerages (QSBs) will need to implement these mechanisms from August 1, while other brokerages will have to implement them between January 1, 2025, and April 1, 2026.
The circular said the implementation standards, including operational modalities, will be formulated by the Industry Standards Forum (ISF) of brokers in consultation with SEBI.
The market said the provisions of this circular will be implemented in a risk-based, sequential manner to ensure smooth adoption and effective implementation for all stock brokers by providing adequate time to stock brokers to make necessary changes depending on their size. Could. regulator.
