Newsbreak Confirmed: SEBI board clears new stock broker norms—11 chapters, ease of compliance in spotlight

Capital market regulator SEBI's board on Wednesday decided to replace its Stock Brokers Norms Regulations, 1992, with a new code -- Stock Brokers Regulations, 2025.

Zee Business had reported that such a move was likely at the regulator's much-awaited mid-December board meeting.

The new regulations have been reorganised into 11 chapters, with emphasis on making compliance easier.

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As per the new regulations, stock exchanges will act as first-line regulators for stock brokers, with key changes made to the reporting system.

Here are answers to some frequently asked questions (FAQs) on the subject:

What are stock broker regulations? Who is required to follow them?

These norms lay down the legal and operational framework for stock brokers and sub-brokers operating in the country's securities market.

These guidelines were introduced to impart discipline, transparency and investor protection in the domestic broking ecosystem.

The norms were introduced in the early 1990s, following the liberalisation of the country's capital markets.

They form the very backbone of regulatory oversight for stock-broking in the country.

What do stock broker regulations do?

These regulations determine who qualifies to act as a stock broker, laying down the eligibility criteria for market entities to register with SEBI.

They also define and govern the process for obtaining, renewing and surrendering a licence.

The regulations also require brokers to meet minimum net worth norms, follow prescribed codes of conduct and maintain proper books of accounts, while specifying obligations related to client onboarding, execution of trades, segregation of client funds and securities, and timely settlement of transactions.

What's the purpose of these norms?

A key objective of the existing framework is to ensure investor protection.

These regulations have been amended several times over the past years to reflect changes in market structure, technology and risk management practices.