SEBI And NSE Released Revised list of designated Qualified Stock Brokers (QSBs)

Chandigarh: Certain stock brokers, due to various factors like their size, trading volumes and amount of clients’ funds handled by them, occupy a significant position in the Indian securities market, leading to concentration of activity among few stock brokers. In order to further strengthen the compliance and monitoring requirements relating to such stock brokers and to ensure efficient functioning of securities market, SEBI vide Circulars No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/24 dated February 06, 2023 and SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2024/14 dated March 11, 2024, on “Enhanced obligations and responsibilities on Qualified Stock Brokers (QSBs)” enumerated the following parameters for designating certain stock brokers, as QSBs.

 1.         the total number of active clients of the stock broker;

2          the available total assets of clients with the stock broker;

3          the trading volumes of the stock broker (excluding the proprietary trading volume of the stock broker);

4          the end of day margin obligations of all clients of a stock broker (excluding the proprietary margin obligation).

5          the proprietary trading volumes of the stock broker who are engaged in clients’ trading;

6          compliance score of the stock broker, derived by assigning highest score to stock brokers with highest penalties levied across Exchanges; and

7          grievance redressal score of the stock broker, derived by assigning highest score to stock brokers with highest count of investor complaints received across Exchanges.

Accordingly, on the basis of the parameters defined in the aforesaid Circular, the following is the list of designated QSBs in alphabetical order and not indicative of ranking.

List of QSBs based on the parameters mentioned at para 4.1.1 to 4.1.5 of SEBI Circular dated March 11, 2024   

 List of QSBs based on the parameter mentioned at para 4.1.6 of SEBI Circular dated March 11, 2024

 List of QSBs based on the parameter mentioned at para 4.1.7 of SEBI Circular dated March 11, 2024   

QSBs shall be required to meet enhanced obligations and discharge additional responsibilities as specified in “Enhanced Obligations and Responsibilities on Qualified Stock Brokers (QSBs) – Comprehensive Operating Guidelines” issued vide NSE & BSE Circulars dated June 01, 2023, and MSE, MCX and NCDEX Circulars dated June 02, 2023.

Existing Qualified Stock Brokers (QSBs) which are not included in the list above, shall continue to comply with the enhanced obligations and responsibilities, for an additional period of 3 financial years from the year when they were designated as QSB or such time, as may be specified by Market Infrastructure Institutions (MIIs), in consultation with SEBI.