Sub-broker registration reforms require exchange recognition, infrastructure proof and mandated tripartite agreements ensuring contractual privity. Amendments require sub-broker applicants to demonstrate adequate infrastructure and obtain exchange recognition; stock exchanges must forward Form B with the broker's recommendation (Form C) and the exchange recognition letter (Form CA) to the Board for registration. Stock brokers and sub-brokers must enter into Board-specified agreements, including a tripartite agreement creating privity between the stock broker and the sub-broker's client. Stock brokers are prohibited from dealing with unregistered sub-brokers, directors of a stock broker cannot act as sub-brokers to the same broker, and recordkeeping obligations for physical and dematerialized securities are expanded.
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Amendments require sub-broker applicants to demonstrate adequate infrastructure and obtain exchange recognition; stock exchanges must forward Form B with the broker's recommendation (Form C) and the exchange recognition letter (Form CA) to the Board for registration. Stock brokers and sub-brokers must enter into Board-specified agreements, including a tripartite agreement creating privity between the stock broker and the sub-broker's client. Stock brokers are prohibited from dealing with unregistered sub-brokers, directors of a stock broker cannot act as sub-brokers to the same broker, and recordkeeping obligations for physical and dematerialized securities are expanded.
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