Sebi mulls simplification of clients onboarding norms; no plans to curb retail trading in derivative mkt
The statement came after a section of media reported that Sebi is seeking curbing retail participation in derivative markets.
New Delhi: Capital markets regulator Sebi on Saturday said it is at an early stage of considering simplification of the process of onboarding clients by adoption of a risk-based approach.
In addition, it said there is no proposal to curb retail participation in derivative markets.
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The statement came after a section of media reported that Sebi is seeking curbing retail participation in derivative markets.
Currently, for trading in the derivative segment, the Sebi circular issued in December 2009 prescribes that the stock broker will have documentary evidence of financial capability for all clients under its circular.
“Sebi, in line with the objective of ease of doing business, is at an early stage of evaluating if the aforesaid circular can be made applicable based on the risk assessment of the clients, ” the regulator said in a statement.
This would promote ease of compliance for brokers and investors, it added.
Further, Sebi said its focus has always been on adequate risk management while ensuring ease of doing business and compliance, rather than on placing any curbs on trading.
It reiterated that proposals that result in any change in the regulatory framework, go through a process of comprehensive consultation with all stakeholders including the public, before any decision is taken by Sebi’s board.
