Sebi tightens oversight on trading members' compliance post-inspection
India's market regulator has directed stock exchanges to monitor whether trading members have implemented "corrective actions", after regulatory inspections found violations, according to a circular issued by BSE on Wednesday.
ADVERTISEMENT Securities and Exchange Board of India (SEBI) conducted joint inspections with the stock exchanges, the circular said, without specifying when the inspections were made or what violations were identified.
However, the circular noted that SEBI will forward these violations to an "Assigned Stock Exchange", which will oversee the timeliness and completeness of corrective measures taken by the trading members.
Trading members, including trading houses and brokerages, have to submit a compliance status report within timelines set by the SEBI, with failure to do so attracting escalating penalties, the circular added. Continued non-compliance beyond 45 days may result in a complete ban on new client onboarding and the disabling of trading terminals across all segments. The Assigned Stock Exchange will also verify compliance during subsequent inspections and may take stringent action if discrepancies are found between the compliance reports and findings from internal auditors or exchange inspections, the notice said.
ADVERTISEMENT The provisions of the circular will come into effect from July 1, 2025.
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