SEBI New Rule The Securities and Exchange Board of India (SEBI) has made changes in the Internet-Based Trading rules. New rules for Internet-based trading have come into effect from today. According to the new rule, now the stock exchanges will give approval to the stock broker for internet-based trading within 7 days. Earlier its time limit was 30 days. Let us know in detail in this report.
New Delhi. The Securities and Exchange Board of India (SEBI) has made changes in the Internet-Based Trading rules. According to SEBI’s rules, now a stock broker will get approval for internet-based trading within 7 days. Earlier, a stock broker used to get approval within 30 days.
Why did SEBI take this decision
SEBI has taken this decision so that stock brokers can trade easily. Under the Internet-based trading rule, now the broker will have to take permission from the stock exchange to use the Internet-based trading rule service. The broker will have to apply for permission.
SEBI has issued a circular for the Internet-based trading rule. According to the circular, the stock exchange had to inform the broker about its decision within 30 days, but now they have to inform the broker within 7 days.
Apart from this, SEBI has abolished the existing requirement of periodic confirmation of Internet-based trading (IBT) data by stock brokers before it is published by the stock exchanges. Now the stock exchanges will publish IBT data based on the details of IBT terminals given by the broker.
This decision has been taken after SEBI received a request related to Internet-based trading from the Industry Standards Forum (ISF) of stock brokers. SEBI said that the new guidelines will come into effect with immediate effect.
