Regulation 18D - Enhanced obligations and responsibilities for qualified stock brokers - Securities and Exchange Board of India (Stock Brokers) Regulations, 1992

1 [ Enhanced obligations and responsibilities for qualified stock brokers. 18D. (1) The Board may designate a stock broker as a qualified stock broker having regard to its size and scale of operations, likely impact on investors and securities market, as well as governance and service standards, on the basis of the following parameters and the appropriate weightages thereon: - a) the total number of active clients; b) the available total assets of clients with the stock broker; c) the trading volumes of the stock broker; d) the end of day margin obligations of all clients of a stock broker; e) compliance score as may be specified by the Board; f) grievance redressal score as may be specified by the Board; and g) the proprietary trading volumes of the stock broker. (2). The stock broker designated as a qualified stock broker shall be required to meet enhanced obligations and discharge responsibilities to ensure: - a) appropriate governance structure and processes; b) appropriate risk management policy and processes; c) scalable infrastructure and appropriate technical capacity; d) framework for orderly winding down; e) robust cyber security framework and processes; and f) investor services including online complaint redressal mechanism. ] ************* NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/116 dated 17-01-2023