Stock Market Rules: Big update for brokers – SEBI issues new forms

News Topical, Digital Desk : The Securities and Exchange Board of India (SEBI) has issued new standardized forms for the registration of stock brokers and clearing members. These rules will be effective from January 7, 2026, the date of notification of the SEBI (Stock Brokers) Regulations, 2026. This circular (SEBI Circular) has been sent to all recognized stock exchanges and clearing corporations. It provides information about the application forms and certificates (SEBI Rules) required for registration under the updated rules.

SEBI has directed exchanges and clearing corporations to inform their members and participants about these provisions and update the relevant bylaws, rules, and regulations. According to the circular, stockbrokers and clearing members will be required to provide detailed information, including organizational structure, net worth, proof of experience, and personal information of owners, partners, or directors. Applicants will also be required to provide undertakings regarding bankruptcy, default, and compliance with SEBI's 'fit and proper person' criteria.

SEBI Forms:
Form A is prescribed for stockbrokers and Form B for clearing members. Documents such as the memorandum and articles of association or partnership deed, as well as details of arrangements with clearing members for trade settlement, must be submitted. Applicants must also pay the prescribed fee as per the Stock Brokers Regulations, 2026.

This
circular has been issued under Section 11(1) of the SEBI Act, 1992, and Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, to protect investor interests and support the development and regulation of the securities market.

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