SEBI reviews framework for stock brokers
12 January 2026 India
Image: Sardar/stock.adobe.com
The Íø±¬³Ô¹Ï and Exchange Board of India (SEBI) has undertaken a series of measures to enhance ease of compliance and facilitate ease of doing business for market intermediaries.
To further this objective, the board carried out a review of the extant technical glitch framework for stock brokers and has modified it in line with ease of compliance.
The eligibility criteria for the applicability of the technical glitch framework has been streamlined to exclude smaller size stock brokers — the framework is now applicable to stock brokers having more than 10,000 registered clients.
As a result of the new eligibility criteria, approximately 60 per cent of stock brokers would move out of this framework and consequently reduce their overall compliance requirement.
The revised framework also carved out certain exemptions from the glitches and the compliance requirement thereof.
The glitches which are taking place outside the stock brokers’ trading architecture, glitches that do not directly affect the trading functionality, and those which have negligible impact, have been exempted from the technical glitch framework.
The decision brings immunity for the stock brokers from the glitches which are out of their control and which do not affect the ability of the stock broker to provide seamless services.
The revised framework also aims to simplify the reporting requirement by providing an extension of time for reporting of technical glitches (from one hour to two hours), consideration to the trading holidays while submitting reports, and streamlining the reporting requirement from reporting to all the exchanges to a single reporting platform.
SEBI confirms that the revised framework rationalised the technology compliance requirement based on the size of the stock brokers and their technology dependency — such as rationalisation in capacity planning and disaster recovery drill requirements etc.
Finally, the financial disincentive structure in the revised framework has been rationalised, says SEBI, considering the applicable exemptions, type of glitches, and the frequency of the occurrences etc., the same shall be issued by the stock exchange.
To further this objective, the board carried out a review of the extant technical glitch framework for stock brokers and has modified it in line with ease of compliance.
The eligibility criteria for the applicability of the technical glitch framework has been streamlined to exclude smaller size stock brokers — the framework is now applicable to stock brokers having more than 10,000 registered clients.
As a result of the new eligibility criteria, approximately 60 per cent of stock brokers would move out of this framework and consequently reduce their overall compliance requirement.
The revised framework also carved out certain exemptions from the glitches and the compliance requirement thereof.
The glitches which are taking place outside the stock brokers’ trading architecture, glitches that do not directly affect the trading functionality, and those which have negligible impact, have been exempted from the technical glitch framework.
The decision brings immunity for the stock brokers from the glitches which are out of their control and which do not affect the ability of the stock broker to provide seamless services.
The revised framework also aims to simplify the reporting requirement by providing an extension of time for reporting of technical glitches (from one hour to two hours), consideration to the trading holidays while submitting reports, and streamlining the reporting requirement from reporting to all the exchanges to a single reporting platform.
SEBI confirms that the revised framework rationalised the technology compliance requirement based on the size of the stock brokers and their technology dependency — such as rationalisation in capacity planning and disaster recovery drill requirements etc.
Finally, the financial disincentive structure in the revised framework has been rationalised, says SEBI, considering the applicable exemptions, type of glitches, and the frequency of the occurrences etc., the same shall be issued by the stock exchange.
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