Sebi extends deadline for stockbrokers to set up records of client orders
Sebi has extended till 1 April deadline for stockbrokers to comply with the requirement of keeping evidence of every instruction given by clients for equity and equity derivative trades
Mumbai: The Securities and Exchange Board of India (Sebi) on Thursday extended the deadline for stockbrokers to comply with the requirement of keeping evidence of every instruction given by clients for equity and equity derivative trades. This rule will now be applicable from 1 April, instead of the earlier specified date of 1 January.
On 26 September, the markets regulator had directed all brokerages to compulsorily record every phone call of their clients or keep evidence of all trade-related instructions in writing, email or text message formats in a bid to prevent any risk arising from unauthorized trading.
The market watchdog had also directed brokerages to keep a record of the logs of internet transactions by their clients and all other legally verifiable records for share transactions.
On 10 November, Mint reported that bourses and brokers were protesting the Sebi order, claiming it was impossible to have adequate phone recording systems at every terminal with sufficient accuracy of voice identification and then retrieve such records.
On Thursday, Sebi said in a circular that it had received representations from the BSE Brokers Forum and the Association of National Exchanges Members of India expressing difficulties in implementing the circular. Sebi said it would grant no further extension than 1 April.
In its September circular, Sebi had put the onus on stock brokers to produce proof of clients’ activities in the event of any dispute arising out of a stock trade.
Editor's Picks »
- VMware: Taking the smart cloud to where data resides
- Internet of Things (IoT) startups that improve efficiency
- Regional languages give Indian startups a voice of their own
- DHFL, IL&FS aftermath: RBI and Sebi join hands to calm volatile markets
- Narendra Modi launches Ayushman Bharat scheme from Jharkhand’s Ranchi
- India’s renewable energy sector hits a milestone but loses speed
- All eyes now on share swap ratio in this mega bank merger
- Jet Privilege can actually get higher valuation than Jet Airways
- Profitability of cement firms to take a hit due to weak prices, high costs
- Pidilite’s shares hold their ground despite weak rupee and rising crude