Integration of broking activities allows single entity trading across equity and commodity derivatives subject to registration and due diligence. Amendments permit a stock broker to operate in equity and commodity derivatives under a single entity. SEBI will grant a one time registration certificate; exchanges/clearing corporations grant subsequent permissions after due diligence. SEBI approval is required only when integration changes control. Client accounts may be transferred between brokers with express client consent and existing documentation preserved. Certain FMC restrictions are repealed or relaxed for activity within the same broking entity, and exchanges and depositories must amend bylaws, implement systems and carry out cross exchange due diligence.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Integration of broking activities allows single entity trading across equity and commodity derivatives subject to registration and due diligence.
Amendments permit a stock broker to operate in equity and commodity derivatives under a single entity. SEBI will grant a one time registration certificate; exchanges/clearing corporations grant subsequent permissions after due diligence. SEBI approval is required only when integration changes control. Client accounts may be transferred between brokers with express client consent and existing documentation preserved. Certain FMC restrictions are repealed or relaxed for activity within the same broking entity, and exchanges and depositories must amend bylaws, implement systems and carry out cross exchange due diligence.
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