Regulatory Relief on the Cards for Brokers as SEBI Proposes Easing Reporting Rules

Market regulator Securities and Exchange Board of India (SEBI) has proposed a set of changes to simplify reporting requirements for stock brokers and extend similar regulatory relief to primary dealers, as part of its broader push to improve ease of doing business in the securities market.

In a consultation paper released on Friday, SEBI said it is reviewing existing norms that require brokers to report multiple bank and demat accounts, even when many of these are not directly used for broking activity. The regulator noted that the current framework has led to duplicative disclosures and added compliance complexity, particularly for entities operating across multiple financial roles.

Primary Dealers To Get Aligned Exemptions 

A key proposal involves extending reporting relaxations to primary dealers, bringing them on par with brokers that also operate as banks. Under the proposed changes, primary dealers would be required to disclose only those bank and demat accounts that are directly linked to broking operations, instead of all accounts maintained by the entity.

SEBI said this alignment would reduce operational friction without diluting transparency or investor protection standards. The regulator emphasised that the objective is to ensure proportional regulation that reflects actual business usage of accounts rather than blanket disclosures.

The proposals are open for public comments, after which SEBI will finalise the framework based on feedback from market participants.

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