CIRCULAR
SEBI/HO/MRD/TPD-1/P/CIR/2024/68 May 30, 2024
To
All Stock Exchanges
(Except Commodity Derivatives Exchanges)
Sir/Madam,
Ease of Doing Business – Internet Based Trading for Stock Brokers
1. To improve ease of doing business and remove obsolete compliance
requirements related to activities of Market Infrastructure Institutions (MIIs),
inputs or suggestions were sought from various stakeholders. In this regard,
there were requests pertaining to Internet Based Trading (IBT) from Industry
Standard Forum (ISF) of stock brokers.
2. Upon examination of the aforesaid request by Working Group of MIIs and
Secondary Market Advisory Committee (SMAC) of SEBI, the following has
been decided:
a. In line with Clause 1.1 of Chapter 2 of SEBI Master Circular for Stock
Exchanges and Clearing Corporations dated October 16, 2023, the
broker is required to apply to the respective stock exchange for a formal
permission to provide IBT Service. The stock exchange is required to
communicate its decision to the member within 30 calendar days of the
date of completed application submitted to the exchange. The timeline,
is hereby reduced to 7 calendar days from 30 calendar days.
b. In line with Clause 1.1.2.4.3.3 of Chapter 2 of SEBI Master Circular for
Stock Exchanges and Clearing Corporations dated October 16, 2023,
brokers providing IBT service are required to make periodic reporting to
the Exchange as specified by the Exchange. As part of the aforesaid
requirement, exchanges compute IBT trade statistics for each stock
broker on the basis of IBT terminal details provided by the stock broker.
It has been decided to do away with the existing requirement of periodic
confirmation of IBT statistics by the stock brokers before they are
published by the stock exchanges. Instead, exchanges would publish
IBT statistics on the basis of details of IBT terminals provided by the
stock brokers. Exchanges, in this regard, may obtain
information/declaration about IBT terminals from stock brokers as
deemed fit by them.
3. The circular would be applicable from immediate effect. The circular is being
issued in exercise of powers conferred under Section 11 (1) of the Securities
and Exchange Board of India Act, 1992 to protect the interests of investors in
securities and to promote the development of, and to regulate the securities
market.
Yours faithfully,
Ansuman Dev Pradhan
Deputy General Manager
Technology, Process Re-engineering, Data Analytics
Market Regulation Department
+91-22-26449622 Email: ansumanp@sebi.gov.in