Overview
- SEBI formally repealed the 1992 framework and notified the SEBI (Stock Brokers) Regulations, 2026, consolidating obligations into 11 chapters with streamlined language.
- Brokers may undertake activities governed by regulators such as RBI, IRDAI, PFRDA, IFSCA, MCA or IBBI, with those activities remaining under the respective authority’s supervision.
- Governance and conduct rules tighten with mandatory compliance officers, whistle‑blower policies, systems to detect and report suspicious activity, and half‑yearly reporting on flagged cases.
- Entry and financial thresholds rise, including a minimum two years’ securities‑market experience for new applicants, one designated director resident in India for 182 days per year within six months, and higher net‑worth bands from Rs 1 crore to Rs 50 crore.
- Operational changes include joint inspections with exchanges and market infrastructure institutions, electronic maintenance of books with location intimation, extended record retention from five to eight years, and expanded disclosure of material changes to SEBI and exchanges.