As per the revised norms, stock brokers are required to have a net worth of Rs 3 crore, within one year of the date of notification, according to the notification released on Wednesday.
Markets regulator Sebi has notified amendments to the depositories and participants norms, hiking the net worth requirement for trading members.
As per the revised norms, stock brokers are required to have a net worth of Rs 3 crore, within one year of the date of notification, according to the notification released on Wednesday.
This net worth shall be increased to Rs 5 crore within two years of the date of notification.
It also provides that a self-clearing member fulfilling the net worth requirements as provided under the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992, will also be eligible to register as a depository participant.
The move is aimed at mitigating possible risks amid increasing investor participation in the securities market.
The amended regulation will be called the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2022, and comes into force from the date of the notification.
