Circular No. HO/38/11/(1)2026-MIRSD-POD/I/7656/2026, Dated: 23.03.2026
The Securities and Exchange Board of India (SEBI) has introduced ease-of-doing-business measures by relaxing certain reporting requirements applicable to stockbrokers.
The changes are aimed at reducing compliance burden while ensuring effective regulatory oversight.
1. Simplified Reporting for Banks and Primary Dealers
Under the revised framework:
- Stockbrokers that are banks or Primary Dealers (PDs) are required to report only those bank accounts that are used for stock broking activities
This eliminates the need to report unrelated accounts, thereby simplifying compliance.
2. Exemption from Demat Account Tagging
SEBI has provided relief by:
- Exempting specified demat accounts from tagging requirements
This reduces operational complexity for brokers managing multiple demat accounts across functions.
3. Streamlined Demat Account Reporting
The requirement for reporting demat accounts has been rationalised and streamlined, with a shift in responsibility:
- Stock exchanges and depositories will now:
-
- Ensure compliance with reporting requirements
- Facilitate information sharing and verification
This reduces duplication of efforts by brokers and leverages institutional infrastructure.
4. Objective of the Circular
The measures aim to:
- Reduce compliance and reporting burden on stockbrokers
- Improve efficiency in regulatory reporting systems
- Enable better coordination between exchanges, depositories, and intermediaries
- Maintain regulatory oversight while simplifying processes
Overall, the move reflects SEBI’s continued focus on balancing ease of doing business with robust compliance standards in the securities market.
Click Here To Read The Full Circular
The post SEBI Relaxes Reporting Norms for Stock Brokers and Demat Accounts appeared first on Taxmann Blog.
