The Department of Economic Affairs (DEA), Ministry of Finance, has amended Rule 8 of the Securities Contracts Regulation Rules (SCRR), 1957, via Gazette Notification G.S.R. 318(E). This amendment aims to provide regulatory clarity and enhance the ease of doing business for brokers in the financial sector. The DEA released a Consultation Paper in September 2024 to address stakeholder concerns regarding certain provisions in the rules. The amendment was carried out after considering feedback from stakeholders and aligns with the government's broader objective of regulatory clarity and ease of doing business. The updated rule is intended to ensure that market intermediaries continue to support the development of India's capital markets in a transparent and well-regulated manner.
Key Entities Referenced
Ministry of Finance: The Indian government ministry responsible for economic policy, financial regulation, and related matters.
Department of Economic Affairs: A department within the Ministry of Finance.
Rule 8 of the Securities Contracts Regulation Rules, 1957: Specific rule within the Securities Contracts Regulation Rules, 1957 being amended.
Securities Contracts Regulation Rules, 1957: Regulations governing securities contracts.
Amendment: Refers to the changes made to Rule 8 of the Securities Contracts Regulation Rules, 1957.
brokers: Entities involved in the buying and selling of securities.
PIB Delhi: Press Information Bureau, Delhi office - source of the information.
DEA: Department of Economic Affairs, Ministry of Finance.
SCRR: Securities Contracts Regulation Rules.
Gazette Notification G.S.R. 318E: Formal government notification of the amendment.
Consultation Paper: Document released by the DEA in September 2024 to gather public comments on Rule 8 SCRR 1957.
September, 2024: Date when the consultation paper was released
Consultation Paper for Public Comments on Rule 8 SCRR 1957.pdf: The title of the consultation paper.
Government: The governing body undertaking regulatory clarity and ease of doing business.
India's capital markets: The financial markets in India where capital is raised through the buying and selling of securities.
NBKMN Release ID: 2129667: Unique identifier for the press release.
Ministry of Finance
Department of Economic Affairs amends Rule 8 of
the Securities Contracts (Regulation) Rules, 1957
Amendment gives regulatory clarity to enhance ease
of doing business for brokers
Posted On: 19 MAY 2025 5:50PM by PIB Delhi
The Department of Economic Affairs (DEA), Ministry of Finance, amended Rule 8 of the Securities
Contracts (Regulation) Rules (SCRR), 1957, via Gazette Notification G.S.R. 318(E). The
amendment gives regulatory clarity to enhance ease of doing business for brokers.
After taking note of the concerns raised by various stakeholders over certain provisions in the said Rules, the
DEA had released a Consultation Paper in September, 2024, (Consultation Paper for Public Comments on
Rule 8 SCRR (1957).pdf) inviting stakeholder comments.
Given the growth in the scale and interconnectedness of the financial sector and the evolution of nature of
business of brokers with time, the DEA felt it necessary to review the appropriateness of safeguards
embedded in the Rules so that the intent of the Rules is served without constraining activities of the
stakeholders.
The amendment has been carried out after due consideration of feedback from the stakeholder and is part of
the broader emphasis of the Government to provide regulatory clarity and enhance ease of doing business in
the financial sector. It will ensure that market intermediaries continue to support the development of India's
capital markets in a transparent and well-regulated manner.
CLICK HERE TO ACCESS THE GAZETTE NOTIFICATION
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NB/KMN
(Release ID: 2129667)