Maintain Website, Display Complaint Status; Check Sebi’s Latest Mandate For Brokers And Depositories

With an aim to bring in transparency, markets regulator Securities and Exchange Board of India (Sebi) on Thursday mandated all stock brokers and depositories to maintain websites.

A designated website brings in transparency and helps the investors to keep themselves well informed about the various activities of the stock broker (SB) and depository participant (DP).

In view of the same, considering the advancement in technology and need to provide better services to the investors, all SBs and DPs have been mandated to maintain a designated website, Sebi said in a circular.

Also Read: Whistleblower Protection, Prevention Of Fraud And Market Abuse; Here’s What Sebi Wants From Stock Brokers

Such website would mandatorily display information such as basic details of the SB/DP such as registration number, registered address of head office and branches and names and contact details such as E-mail IDs etc. of all key managerial personnel, including compliance officer.

The new framework would come into effect from August 16, the Sebi said.

In addition, such website is required to display step-by-step procedures for opening an account, filing a complaint on a designated E-mail ID, and finding out the status of the complaint and details of authorised persons.

The URL to the website of a SB or DP would be reported to the stock exchanges or depositories within a week of this circular coming into effect. Any modification in the URL need to be reported within three days of such changes.

Recently, Sebi floated a tender inviting expression of interest (EOI) for empanelment of forensic auditors for conducting forensic audit of Mutual Funds, its Asset Management Companies, its Trustee companies or board of trustees.

Sebi also proposed an institutional mechanism that will require stock brokers to put in place systems for detection and prevention of market abuse. This proposal also enumerates some of the common examples of market abuses that brokers must look to detect/prevent, the entities who should be subject to surveillance, and the accountability that is entailed.

(With PTI inputs)

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