With effect from August 16, 2023, stock brokers and depository participants (DPs) will now be required to post all necessary information on their websites.
This will be done to increase investor transparency. In a circular that was published on February 15, the Securities Exchange Board of India (SEBI) issued one of the most recent directives.
The regulator said that a dedicated website will make things clearer and make it easier for investors to stay up to date on the stock broker’s various activities. In an effort to provide investors with better services, this will be done.
The following information must be available on the website:
1. Basic information like the registration number and the head office and branch address.
2. Names and contact information, such as email addresses, for each key manager, including the compliance officer.
3. Procedures for opening an account, submitting a complaint to a specified email address, and determining the complaint’s status.
4. a list of authorized parties.
The specialists and storehouse members (DPs) are likewise intended to report the URL of the site to stock trades/safes in the span of seven days of this round happening on Aug 16 this year. Additionally, stock exchanges will be informed of any URL changes within three days.
It is now the responsibility of stock markets and depositories to inform stock brokers and depository participants of these provisions and post them on their websites.
In order to put these provisions into effect, they are expected to amend the relevant bylaws, rules, and regulations.
Introduction of the issue summary document SEBI also released a circular regarding the introduction of the issue summary document (ISD), in addition to websites for stock brokers.
It has been decided to provide relevant information and data points in a structured manner at the Stock Exchanges and Depositories in order to facilitate data consumption by stakeholders like researchers, policymakers, market analysts, and market participants in relation to public issues, further issues, buybacks, and offers.
As a result, an Issue Summary Document (ISD) has been created after stakeholder consultation.