SEBI Plans New Safeguards Against Trading Terminal Misuse, Reviews Broker Rules

India Handle | Business News

The Securities and Exchange Board of India (SEBI) is planning new safeguards to prevent the misuse of trading terminals and strengthen compliance among stockbrokers. SEBI Chairman Tuhin Kanta Pandey has highlighted several regulatory measures aimed at improving transparency and protecting investors.

One of the key proposals is to introduce a graded compliance system for stockbrokers. Under this approach, compliance requirements could be adjusted according to the size, operations and risk profile of brokers.

SEBI is also reviewing existing rules related to short-selling and securities lending. The review aims to assess whether the current framework needs changes to improve market functioning and maintain investor confidence.

In addition, the regulator is considering easing certain rules for share buybacks and offers for sale (OFS). These measures could help simplify procedures for companies while maintaining appropriate safeguards for investors.

SEBI is also exploring the use of tokenisation for corporate bonds and the application of artificial intelligence (AI) in financial markets. These initiatives could support innovation, improve efficiency and strengthen market oversight.

The proposed measures reflect SEBI’s broader focus on making India’s securities market more transparent, efficient and secure. However, the final details and implementation timelines will depend on the regulator’s subsequent decisions and announcements.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.