CIRCULAR
HO/38/11/(1)2026-MIRSD-POD/I/7656/2026 March 23, 2026
To,
All recognized Stock Exchanges
All Depositories
Madam / Sir,
Sub: Ease of doing business measures – Relaxations in certain reporting
requirements for certain Stock Brokers and doing away with the
requirement of reporting of demat account
1. SEBI has specified provisions pertaining to enhanced supervision of Stock Brokers
(“brokers”)/Depository Participants (“DPs”) under para 15 of Master Circular for
Stock Brokers dated June 17, 2025 (hereinafter mentioned as “Master Circular”).
2. In terms of para 15.3 of Master Circular, all demat accounts maintained by brokers
should be appropriately tagged. However, the said requirement is not applicable
for the demat accounts which are used exclusively for banking activities by brokers
which are also banks.
3. Further, as per para 15.4 of Master Circular, brokers are required to inform Stock
Exchanges of their existing and new bank accounts. However, broker which is also
bank may be required to report to Stock Exchange only those bank accounts that
are used for their stock broking activities. Further, brokers are required to inform
Stock Exchange of existing and new demat accounts.
4. In this regard, representation has been received from exchanges to relax the
reporting requirement of demat account for brokers and to align the reporting
framework of brokers which are primary dealers with the exemptions provided to
brokers which are banks. In view of the same and to enhance regulatory efficiency
Page 1 of 4
as well as to promote ease of doing business for brokers by harmonizing and
relaxing the reporting obligations, it has been decided to modify the relevant paras
in Master Circular as under:
15. Enhanced Supervision of Stock Brokers / Depository Participants
15.1……………………
15.1.1. Uniform nomenclature to be followed by stock brokers for
Naming/Tagging of Bank and Demat Accounts and the reporting of such bank
accounts to the Stock Exchanges.
15.3. Naming/Tagging of Bank and Demat Accounts by Stock Broker
15.3.4. All demat accounts maintained by stock brokers should be appropriately
tagged. Further, it is prescribed that:
15.3.4.5. The provisions at 15.3.4 shall not be applicable to stock brokers which
are also primary dealers for their demat accounts which are used exclusively for
activities other than stock broking activities.
15.4. Reporting of Bank maintained by Stock Broker
15.4.1………………………………
15.4.1.1. Stock broker which is also bank or primary dealer, shall be required to
report only those bank accounts to the stock exchanges that are used for their
stock broking activities.
15.4.2. Deleted
15.4.3. Stock Exchanges and/or depositories, as the case may be, shall ensure the
following:
Page 2 of 4
15.4.3.1. All new bank and demat accounts shall be named as per the above given
nomenclature.
15.4.3.2 The details regarding bank accounts only shall be communicated by stock
broker to the stock exchanges within seven working days of the opening of the
account.
15.4.3.3. Closure of any of the reported bank accounts shall be communicated to
the stock exchanges within seven working days of its closure.
15.4.3.4 Depositories shall ensure that once the nomenclature for a particular
demat account has been assigned by the stock broker, then the same shall not be
modified.
15.4.3.5. Any non-compliance regarding nomenclature and reporting of bank
accounts and nomenclature of demat accounts shall attract penal action as per the
provisions of stock exchanges and/or depositories, as the case may be.
15.4.3.6. Depositories shall provide details of all demat accounts opened/closed
by a stock broker to the concerned stock exchanges. The periodicity and
mechanism of sharing the said details shall be jointly determined by stock
exchanges and depositories.
5. Accordingly, Paras 15.3 and 15.4 of Master Circular for Stock Brokers dated June
17, 2025 stand amended to the extent of para 4 as detailed above. All other
provisions specified in Master Circular for Stock Brokers dated June 17, 2025 shall
continue to remain applicable.
6. The provisions of this circular shall come into force with effect from April 17, 2026.
7. Stock Exchanges/Depositories are directed to:
7.1. bring the provisions of this circular to the notice of their members / participants
and also disseminate the same on their websites;
Page 3 of 4
7.2. make necessary amendments to the relevant Bye-laws, Rules and Regulations
for the implementation of the above decision;
8. This circular is issued in exercise of powers conferred under Section 11(1) of
Chapter IV of the Securities and Exchange Board of India Act, 1992, and Section
19 of Chapter IV of the Depositories Act, 1996 read with Regulation 51 of Securities
Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations,
2018 to protect the interests of investors in securities and to promote the
development of, and to regulate the securities markets.
9. This circular is available on SEBI website at www.sebi.gov.in under the category:
‘Legal → Circulars’.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022 26449633
aradhanad@sebi.gov.in
Page 4 of 4