Sebi tells brokers to prevent mkt abuse

#New Delhi
Sebi on Thursday issued a circular requiring stock brokers to establish an institutional mechanism for prevention and detection of fraud or market abuse in a bid to protect the interest of investors in securities market.

The circular mandates the implementation of systems for the surveillance of trading activities and internal controls, introduction of a whistle-blower policy, among other obligations.

These requirements are part of Sebi (Stock Brokers) (Amendment) Regulations, 2024, which aim to ensure higher standards of market integrity and investor protection.

The implementation will be based on the size of the stock brokers. Brokers with more than 50,000 active Unique Client Codes (UCCs) are required to comply by January 1, 2025.

Further, those with 2,001 to 50,000 active UCCs have to comply by April 1, 2025, and brokers with up to 2,000 active UCCs must comply by April 1, 2026.PTI
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