SEBI Overhauls Stockbroker Rules, Replaces 1992 Framework for Modern Market

• SEBI replaces its 1992 stockbroker regulations with the SEBI (Stock Brokers) Regulations, 2025, aiming to modernize market practices and simplify compliance.
• New rules define algorithmic trading, clarify proprietary trading norms, and regulate Execution-Only Platforms (EOPs) for mutual funds.
• The revamp consolidates scattered provisions, removes obsolete requirements, and updates key definitions to reflect current market structures.
• Compliance is eased through joint inspections, electronic record-keeping, and rationalized reporting; stock exchanges are designated as first-line regulators.
• Enhanced supervision for Qualified Stock Brokers (QSBs) will focus on those with larger client bases and higher trading volumes, aligning oversight with risk.

Why It Matters: SEBI modernizes stockbroker regulations, enhancing market clarity, compliance, and oversight for evolving models.