Sebi announces common compliance reporting mechanism for brokers from August 1

Market regulator Securities and Exchange Board of India (Sebi) and exchanges have introduced a common reporting mechanism for stock brokers. Brokers will be able to submit compliance reports to Samuhik Prativedan Manch, or the common reporting portal, at one exchange instead of multiple exchanges. As claimed by Sebi, close to a thousand stock brokers who have multiple memberships with NSE and other stock exchanges would benefit from this initiative.

The Samuhik Prativedan Manch will eliminate the requirement to submit compliance reports to multiple exchanges where a stock broker is registered. This is expected to reduce brokers' compliance costs. As per Sebi, the new mechanism will be implemented in a phased manner, with the submission of 40 compliance reports in the first phase being implemented under Samuhik Prativedan Manch from August 1, 2025.

As per Sebi, the Samuhik Prativedan Manch for brokers encourages a regulatory framework that is simple, transparent, and cost-effective, resulting in ease of doing business for the intermediaries and, in turn, ease of doing investments for investors. Streamlining and rationalising compliance reporting is a key measure for achieving ease of doing business.

Stock brokers who are registered with multiple stock exchanges are currently required to submit compliance reports to all the exchanges with which they are registered. Sebi said that after the first phase from August 1, the later phases will standardise the rest of the document submissions and encompass them in the centralised reporting platform, across the remainder of the brokers, including commodity brokers.