Restrictions on inter-broker trading require brokers to deal with only one counterparty to reduce regulatory risk. SEBI directs exchanges to prohibit brokers/sub brokers from dealing with brokers/sub brokers of the same exchange without prior exchange permission, permitting such dealings only with one counterparty after due diligence; limit proprietary dealings across exchanges to one counterparty after intimation; reiterate that a sub broker shall not be affiliated to more than one stock broker of the same exchange; require registration for cross exchange client dealings; and mandate immediate implementation, bye law amendments, member notification and reporting of implementation.
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.
Restrictions on inter-broker trading require brokers to deal with only one counterparty to reduce regulatory risk.
SEBI directs exchanges to prohibit brokers/sub brokers from dealing with brokers/sub brokers of the same exchange without prior exchange permission, permitting such dealings only with one counterparty after due diligence; limit proprietary dealings across exchanges to one counterparty after intimation; reiterate that a sub broker shall not be affiliated to more than one stock broker of the same exchange; require registration for cross exchange client dealings; and mandate immediate implementation, bye law amendments, member notification and reporting of implementation.
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