TMI BlogMeasures to instill trust in securities market – Expanding the framework of Qualified Stock Brokers (QSBs) to more stock brokersX X X X Extracts X X X X X X X X Extracts X X X X ..... ry 06, 2023 and para 18 of Master Circular for Stock Brokers dated May 17, 2023 inter-alia stated that the following four parameters shall be considered for designating a stockbroker as QSB, on an annual basis: 1.1. the total number of active clients of the stock broker; 1.2. the available total assets of clients with the stock broker; 1.3. the trading volumes of the stock broker (excluding the proprietary trading volume of the stock broker); 1.4. the end of day margin obligations of all clients of a stock broker (excluding the proprietary margin obligation of the stock broker in all segments) 2. Based on the aforementioned parameters, the first list of QSBs was issued by stock exchanges on March 03, 2023. 3. To further protect the interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticular parameter compared to aggregate of the respective parameter summed across all stock brokers shall be calculated, viz. % of count of active clients for a particular broker shall be calculated by dividing the individual count of active clients for a particular broker by total number of active clients of all the stock brokers and the value is multiplied by 100. Similarly, individual % shall be calculated for all the parameters mentioned at para 4.1.1 to 4.1.7 above. 4.2.2. Based on the % of various parameters calculated above, the following stock brokers shall be identified as QSBs: 4.2.2.1. Stock brokers with a total sum of individual % of the parameters mentioned at para 4.1.1 to 4.1.5, greater than or equal to six point two five (6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by virtue of the parameters enumerated at para 4.1. 4.6. Such voluntarily designated QSBs shall have to abide by all the enhanced obligations and responsibilities for QSBs stated at para 18.5 and 18.6 of the master circular including such other provisions as may be prescribed by SEBI/stock exchanges from time to time. The detailed operational modalities in this regard shall be issued by stock exchanges, in consultation with SEBI. 5 . Applicability: 5.1. The provisions of this circular shall come into force in a risk-based, staggered manner to ensure smooth adoption and effective implementation for all the QSBs by providing enough time for them, based on their size, for making necessary changes. 5.2. Based on the above, the effective date of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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