Sebi today said it has done away with the category of sub-brokers as market intermediaries, which require registration with the regulator.

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Besides, the markets regulator said no person will be granted a fresh sub-broker registration, and the registered ones will have time till the end of the current fiscal for migrating to act as an authorized person or trading member.

Under the current framework, sub-brokers need to seek registration from the regulator under Sebi (stock broker and sub-broker) norms, while authorised persons need to seek registration from the concerned exchange.

However, there is no difference in the operative role of a sub-broker and that of an authorized person.

A sub-broker acts on behalf of a trading member as an agent for assisting investors in dealing with securities.

The move came after Sebi's board in June had approved a proposal to discontinue with sub-broker as an intermediary to be registered with the regulator.

"In view of the same, the need for the category of sub-broker as a market intermediary may no longer be required.

"No fresh registration shall be granted to any person as sub-broker. Any pending applications for registration as sub-brokers under process, shall be returned to the concerned stock exchanges for onward transmission to the applicant," the Securities and Exchange Board of India (Sebi) said in a circular.

According to the regulator, the registered sub-brokers will "have time till March 31, 2019 in order to migrate to act as an AP and/ or trading member" and those who do not choose to migrate will be deemed to have "surrendered their registration" with Sebi from March 31, 2019.

"Consequent upon migration/ deemed surrender, the certificate of registration granted to the sub-brokers by Sebi shall stand withdrawn," the regulator said.

All the existing sub-brokers will have to pay renewal fees to Sebi up to the financial year 2018-19, while the payment made by them for the period beyond that will be refunded by the regulator on receipt of recommendation from the respective stock exchange.

The regulator has asked stock exchanges to put in place an appropriate process for surrender or migration of sub-broker to trading member or authorised person.

In case of a registered sub-broker, who is already approved to act as AP in derivatives segment of the exchanges, he will be registered with the exchange to continue activities of sub-broker as an AP in cash segment, Sebi said.

With regard to a registered sub-broker, who is not approved by the exchanges to act as AP in derivatives segment, the bourses will have to register them as same in the cash segment to continue their operations without disruption.

Also, the existing sub-brokers have an option to become a trading member, if they meet the eligibility criteria prescribed under the regulations.