Mumbai : Market Regulator Securities and Exchange Board of India (Sebi) Monday issued guidelines to stock exchanges and clearing houses for implementing the single registration certificate across different bourses requiring them to share information about their members.
“The stock exchange(s) and clearing corporation(s) shall coordinate and share information with one another, about their members,” Sebi said in a circular here.
This was among other guidelines issued as part of streamlining the registration process for market entities.
Sebi had recently notified new norms that require stock brokers and clearing entities to have a one-time single registration certificate to operate across different bourses.
Further, new entity seeking to act as stock broker or clearing member is required to apply to Sebi through the respective stock exchange or clearing corporation in the manner prescribed in the broker regulations, Sebi said.
“The entity shall be issued one certificate of registration, irrespective of the stock exchange(s)/clearing corporation(s) or number of segment(s),” the circular added.
An entity already registered with the regulator can directly apply for approval to the concerned exchange or clearing corporation.
The entities would continue to pay fees for each segment approved by the stock exchange or clearing house, as per current practice, Sebi said.
Sebi has asked exchanges and clearing corporations to accord approval to Sebi registered entities for operating in any segment after exercising due diligence and on being satisfied about the compliance of all relevant eligibility requirements.
They would have to ensure that the applicant, its directors, proprietor, partners and associates satisfy the “Fit and Proper Criteria”, have taken corrective steps to rectify the deficiencies or irregularities observed in the past and that all pending dues have been recovered.