The Securities and Exchange Board of India (SEBI) has issued a circular on the maintenance of a website by stock brokers and depository participants. The circular requires that all stock brokers and depository participants maintain information related to their business activities and services.
The SEBI circular outlines the requirements for the website and the information that must be provided. The website must be maintained by the stock broker or depository participant and should be accessible to the public. The website must also be updated on a regular basis to ensure that the information provided is accurate and up to date.
The information that must be provided on the website includes details about the stock broker or depository participant, such as their name, address, and contact information. The website must also provide information about the services offered by the stock broker or depository participant, such as trading facilities, demat facilities, and other value-added services. The website must also provide information on the fees and charges associated with these services.
The SEBI circular also requires that the website contain information about the financial health of the stock broker or depository participant. This includes details about their financial statements, net worth, and capital adequacy ratio. The website must also provide details about any pending legal or regulatory action against the stock broker or depository participant.
The SEBI circular is intended to promote transparency and accountability in the securities market. By requiring stock brokers and depository participants to maintain a website that provides accurate and up-to-date information, investors can make informed decisions about where to invest their money. The website also provides a mechanism for investors to verify the legitimacy of the stock broker or depository participant.
In addition, the website can be used to communicate with clients and potential clients. Stock brokers and depository participants can use the website to provide information about upcoming events, market trends, and other relevant information. This can help to build trust and confidence with clients and potential clients.
In conclusion, the SEBI circular on the maintenance of a website by stock brokers and depository participants is an important step in promoting transparency and accountability in the securities market. By requiring stock brokers and depository participants to maintain a website that provides accurate and up-to-date information, investors can make informed decisions about where to invest their money. The website also provides a mechanism for stock brokers and depository participants to communicate with clients and potential clients, helping to build trust and confidence.
Securities and Exchange Board of India
Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/30 Dated: February 15, 2023
To,
All Recognized Stock Exchanges
All Recognized Depositories
Stock Brokers through recognized Stock Exchanges
Depository Participants through recognized Depositories
Dear Sir/Madam,
Subject: Maintenance of a website by stock brokers and depository participants
1. SEBI, through various circulars, has mandated certain information to be published by stock brokers (SB) /depository participants (DP) on their respective websites.
2. A designated website brings in transparency and helps the investors to keep themselves well informed about the various activities of the SB/DP. In view of the same, considering the advancement in technology and need to provide better services to the investors, all SBs and DPs are hereby, mandated to maintain a designated website.
3. Such website shall mandatorily display the following information, in addition to all such information, which have been mandated by SEBI/stock exchanges/depositories from time to time.
i. Basic details of the SB/DP such as registration number, registered address of Head Office and branches, if any.
ii. Names and contact details such as email ids etc. of all key managerial personnel (KMPs) including compliance officer.
iii. Step-by-step procedures for opening an account, filing a complaint on a designated email id, and finding out the status of the complaint, etc.
iv. Details of Authorized Persons.
4. The URL to the website of a SB/ DP shall be reported to the stock exchanges/ depositories within a week of this circular coming into effect. Any modification in the URL shall be reported to stock exchanges/depositories within 3 days of such changes.
5. The provisions of this circular shall come into effect from August 16, 2023.
6. The stock exchanges and depositories are directed to:
a. bring the provisions of this circular to the notice of stock brokers and depository participants, as the case may be, and also disseminate the same on their websites;
b. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above provisions;
c. communicate to SEBI, the status of the implementation of the provisions of this circular in their monthly development report and
d. monitor compliance of this circular and submit a compliance report to SEBI in this regard by August 31, 2023.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Yours faithfully,
Aradhana Verma
General Manager
Tel.No: 022 26449633
aradhanad@sebi.gov.in
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