Sebi Simplifies Reporting Rules for Stock Brokers

Sebi has relaxed reporting requirements for stock brokers, eliminating mandatory reporting of demat accounts and easing bank account disclosure norms. The changes aim to improve regulatory efficiency and simplify business operations. Brokers must report only relevant bank accounts for stock broking activities, effective April 17, 2026.

In a significant move to streamline operations, the Securities and Exchange Board of India (Sebi) announced relaxed reporting regulations for stock brokers. This comes as part of an effort to enhance regulatory efficiency and promote seamless business conduct in the trading sector.

Among the key changes, Sebi has removed the obligation for brokers to report demat accounts, allowing a focus on accounts tied directly to broking activities. Additionally, brokers affiliated with banks or as primary dealers have new flexibilities regarding bank account disclosures.

The amendments, set to take effect on April 17, 2026, dictate that non-compliance will result in penalties. This regulatory shift is expected to ease the compliance burden on brokers while ensuring effective oversight.

(With inputs from agencies.)