Top 7 SEBI New Rules for Stock Brokers in 2024

By Irfan | July, 10, 2024

Monitor Trading Activities


To protect against fraud and maintain market integrity, stock brokers should set up trustworthy procedures for keeping an eye on trading activity and internal controls.

Market Abuse Prevention


For the safety of investors and to maintain market fairness, brokers are required to identify and avoid instances of market abuse, such as insider trading, unlawful trading, and price manipulation.

SEBI's Whistleblower Policy


With the implementation of a whistleblower policy, SEBI promotes transparency and accountability by enabling staff members to disclose any illegal activity without worrying about facing penalties.

Brokers' Escalation Procedures


Clear escalation procedures should be established by brokers in order to address problems as soon as possible, guaranteeing quick resolution and avoiding potential harm.

Prohibit Mule Accounts


To improve the security of the financial system, brokers should prohibit the usage of "mule accounts," or accounts used for illegal activities.

No Past Action Impact


The updated circular does not impact past actions or liabilities, allowing brokers to comply without fearing retrospective consequences.

SEBI Master Circular for Stock Brokers


The SEBI's Master Circular for Stock Brokers, issued May 22, 2024, compiles all relevant regulations into one comprehensive document, giving brokers all they need to be compliant.