Securities And Exchange Board Of India (SEBI) Issues Notification To Amend Stock Brokers Regulations

According to the notification, the regulations have been amended under the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).

The amended regulations will be known as the "Securities and Exchange Board of India (Stock Brokers) (Second Amendment) Regulations, 2023" and will come into effect from the date of their publication in the Official Gazette.

The notable changes to the existing regulations are as follows:

1. In the first proviso, after the words "the concerned clearing corporation," the symbol '.' shall be substituted with the symbol ':'.

2. After the first proviso, a new provision has been inserted, which states: "Provided further that no separate registration shall be required for any person registered with the limited purpose clearing corporation as a participant for participating in the tri-party repo segment for undertaking proprietary trades in corporate bonds."

3. The existing Explanation has been renumbered as Explanation 1.

4. A new Explanation, known as Explanation 2, has been added, which clarifies the definition of "participant" for the purposes of these regulations. According to Explanation 2, "participant" means any person who is an eligible entity as stipulated under the Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018.

Notification No. SEBI/LAD-NRO/GN/2023/140

Date: 24/07/2023

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