SEBI Rolls Out Revised Registration Framework for Market Intermediaries

The capital market regulator, the Securities and Exchange Board of India (SEBI) has rolled out standardised application formats for the registration of stock brokers and clearing members, with retrospective effect from January 7, 2026, the date on which the SEBI (Stock Brokers) Regulations, 2026 came into force.

Directions to Exchanges and Clearing Corporations

In a circular addressed to all recognised stock exchanges and clearing corporations, SEBI detailed the revised application forms and registration certificates required under the updated regulatory regime. Exchanges and clearing corporations have been directed to inform their members and participants of the new requirements and suitably amend their bye-laws, rules and internal regulations to ensure compliance.

Enhanced Disclosure Requirements

Under the revised framework, applicants must submit comprehensive information covering their organisational structure, net worth, and relevant experience, along with personal and professional details of proprietors, partners, or directors.

Additionally, entities are required to provide declarations relating to insolvency status, history of defaults, and confirmation of compliance with SEBI’s “fit and proper person” criteria applicable to market intermediaries.

Forms, Documentation and Fees

The prescribed formats, Form A for stock brokers and Form B for clearing members, require supporting documents such as the memorandum and articles of association or partnership deed, as well as details of arrangements with clearing members for trade settlement, where applicable. Applicants must also pay the requisite registration fees as specified under the Stock Brokers Regulations, 2026.

Regulatory Backing

The circular has been issued under the powers granted by Section 11(1) of the SEBI Act, 1992, and Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, to protect investor interests and promote the orderly development and regulation of India’s securities market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.