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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Ease of doing business- Changes in reporting

12-Jan-2024 | SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2024/03 January

SEBI has issued modification to SEBI master circular on stock brokers (master circular) dated May 17, 2023 regarding Changes in reporting.

By virtue of this circular following modifications has been made to clause 15 of the Master Circular:-

1. Clause 15.5.2 stands deleted.
2. Clause 15.5.3 stands modified whereby G principle is reiterated as follows:
15.5.3 Stock exchanges shall put in place a mechanism for monitoring of clients funds (G principle) lying with the stock brokers on the principle enumerated below:

G Principle: The total available funds i.e. cash and cash equivalent with the stock broker and with the clearing corporation/clearing member should always be equal to or greater than clients funds as per the ledger balance.

3.Table 5, 6 and Table 7 stands deleted.

Furthermore The stock exchanges are directed to bring the provisions of this circular to the notice of stock brokers, and also disseminate the same on their websites
and jointly issue the following within 15 days from the date of issuance of this circular.
i. operational guidelines in consultation with relevant stakeholders; and
ii. an SOP for monitoring the implementation of provisions of this circular
c. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above provisions; and
d. communicate to SEBI, the status of the implementation of the provisions of this circular in their monthly development report

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