SEBI's big move: 54 rules changed to simplify stock market trading, investors to benefit

Mumbai (The Uttam Hindu): Market regulator Securities and Exchange Board of India (SEBI) has proposed a new framework to simplify trading regulations. The aim is to overhaul the trading framework on stock exchanges, simplify regulations, and reduce compliance burdens for market participants.

Through the new proposal, SEBI aims to promote ease of trading in both stock exchanges and commodity exchanges.

The consultation paper issued by Sebi has recommended merging repetitive provisions on trading, price bands, circuit breakers, bulk and block deal disclosures, call auctions and liquidity enhancement schemes.

The official statement said that changes have been recommended to some 54 regulations. This includes rules covering both the equity and commodity segments under a single framework. The merger also includes provisions related to margin trading facilities (MTFs), specific client codes, PAN requirements, trading hours, and daily price limits.

The statement further stated that the disclosure provisions related to bulk deals and block deals may be merged. Further clarity may be provided on bulk deal disclosure. This means that information on bulk deals completed between member exchanges will be disseminated by the exchanges at the client level.

The regulator said a separate master circular will be issued to address the regulatory implications of clearing corporations, eliminating regulatory overlap. The statement further stated, “Penalties imposed for modifications to client codes and OTR allocations by exchanges and clearing corporations should be consistent.”

Union Finance Minister Nirmala Sitharaman had earlier announced to simplify, ease and reduce compliance costs for financial sector participants through a consultation process.