Securities and Exchange Board of India (SEBI).
\n\nThe Securities and Exchange Board of India (SEBI) is planning safeguards to prevent the misuse of brokers’ trading terminals and exploring a graded compliance framework for stock market intermediaries.
\n\nUnder the move, the measures are aimed at strengthening market integrity, improving oversight and addressing risks arising from the growing use of technology in trading.
\n\nThe plans were announced by SEBI Chairman Tuhin Kanta Pandey. Under the proposed graded compliance system, stockbrokers could face different regulatory requirements depending on their size, client exposure and reliance on technology.
\n\nThe regulator is also working on safeguards against terminal misuse and reviewing other market mechanisms to improve liquidity and price discovery.
\n\n"We are developing a framework to put in place safeguards to prevent misuse of trading terminals," Pandey said.
\n\nFor investors, the main benefit could be stronger oversight of trading activity and improved accountability among brokers.
\n\nBetter identification of trading terminals could help regulators investigate suspected violations, including the unauthorised use of accounts and potential circumvention of margin requirements.
\n\nMisuse of trading infrastructure can also create risks for market integrity. If trading activity is conducted without adequate disclosure or oversight, it can complicate the monitoring of market…
Original source: https://www.timesnownews.com/business-economy
