Internet-based trading: Sebi reduces approval time to 7 days for brokers
Markets regulator Sebi on Thursday significantly reduced the time taken by stock exchanges for granting approval to stock brokers for internet-based trading to seven days from the current 30 days. The move is aimed at facilitating ease of doing business.
Markets regulator on Thursday significantly reduced the time taken by for granting approval to stock for to seven days from the current 30 days. The move is aimed at facilitating .Under the rule, the is required to apply to the respective stock exchange for a formal permission to provide internet-based trading service.
Further, the stock exchange, which was required to communicate its decision to the member within 30 calendar days, now have to do so within 7 days, the Securities and Exchange Board of India (Sebi) said in its circular.
The can take place through , which will route client orders to exchange trading systems for execution. Thus a client sitting in any part of the country can using the internet as a medium through brokers' internet trading systems.
Additionally, the has abolished the existing requirement of periodic confirmation of internet-based trading (IBT) by stock brokers before they are published by stock exchanges.
Instead, exchanges would publish IBT statistics on the basis of details of IBT terminals provided by stock brokers. Further, exchanges, in this regard, can obtain information/declaration about IBT terminals from stock brokers as deemed fit by them.
The decision has been taken after Sebi received requests pertaining to internet-based trading from the (ISF) of stock brokers.
The new guidelines will be applicable with immediate effect, Sebi said.
Source: Stocks-Markets-Economic Times
