Overview
- Effective January 7, 2026, the SEBI (Stock Brokers) Regulations, 2026 replace the 1992 framework, with ongoing registrations, inspections and investigations continuing under the new rulebook.
- Brokers may undertake activities governed by other financial regulators such as RBI, IRDAI, IBBI, PFRDA, IFSCA or MCA, with those activities falling under the respective regulator’s jurisdiction.
- The consolidated rulebook is organized into 11 chapters with obsolete provisions removed, allows joint inspections with exchanges and market infrastructure institutions, and permits electronic maintenance of books with exchange intimation.
- Governance and compliance standards rise with a designated compliance officer, mandatory whistleblower policy, suspicious-activity systems, a resident designated director, a two‑year experience requirement for new applicants, extended record retention to eight years and revised net worth thresholds.
- SEBI narrowed the technical‑glitch regime to brokers with more than 10,000 clients, exempted incidents beyond broker control, extended incident reporting to two hours with a common portal, and rationalised financial disincentives with immediate effect.