SEBI proposes easing reporting norms for brokers, extends relief to primary dealers

SEBI proposes easing reporting norms for brokers, extends relief to primary dealers

• SEBI proposes easing bank account reporting for stock brokers
• Primary dealers to report only accounts used for broking
• Draft seeks to reduce compliance burden and enhance regulatory efficiency

Did our AI summary help?

Market regulator Securities and Exchange Board of India (SEBI) has proposed relaxing bank account-related reporting requirements for stock brokers, including primary dealers, as part of its broader ease of doing business initiative.

In a draft circular issued for public comments on Friday, SEBI proposed that the requirement to tag demat accounts will not apply to accounts used exclusively for activities other than stock broking by brokers that are also primary dealers. Further, brokers that are banks or primary dealers would be required to report only those bank accounts that are used for their stock broking activities.

The draft circular stated, “Stock broker which is also bank or primary dealer shall be required to report to the stock exchanges only those bank accounts that are used for their stock broking activities.” SEBI said that representations have been received from exchanges to relax the reporting requirement for demat accounts for brokers and to align the reporting framework for brokers that are primary dealers with the exemptions provided to brokers that are banks.

Also read: Avadhut Sathe moves SAT again, seeks release of funds to challenge order in Supreme Court, order reserved

The draft also proposes the deletion of certain reporting provisions relating to demat accounts and instead mandates that depositories share details of demat accounts opened or closed by brokers directly with stock exchanges. The periodicity and mechanism for such sharing will be jointly determined by exchanges and depositories.

Additionally, brokers must continue to intimate stock exchanges within one week of opening or closing bank accounts used for stock broking activities.

Under the current framework, brokers are required to appropriately name and tag all bank and demat accounts and report details of such accounts to stock exchanges. While brokers that are also banks currently enjoy limited exemptions, primary dealers were not explicitly aligned with similar relaxations.

SEBI said the changes aim to harmonise the reporting framework, enhance regulatory efficiency, and reduce the compliance burden while retaining necessary supervisory oversight. SEBI has invited public comments on the draft circular till March 6, 2026.

Also read: Listing rules on corporate governance to prevail over RBI’s for listed banks, clarifies SEBI