Ease of doing business measures - Relaxations in certain reporting requirements for certain Stock Brokers and doing away with the requirement of reporting of demat account

CIRCULAR HO/38/11/(1)2026-MIRSD-POD/I/7656/2026 March 23, 2026 To, All recognized Stock Exchanges All Depositories Madam / Sir, Sub: Ease of doing business measures – Relaxations in certain reporting requirements for certain Stock Brokers and doing away with the requirement of reporting of demat account 1. SEBI has specified provisions pertaining to enhanced supervision of Stock Brokers (“brokers”)/Depository Participants (“DPs”) under para 15 of Master Circular for Stock Brokers dated June 17, 2025 (hereinafter mentioned as “Master Circular”). 2. In terms of para 15.3 of Master Circular, all demat accounts maintained by brokers should be appropriately tagged. However, the said requirement is not applicable for the demat accounts which are used exclusively for banking activities by brokers which are also banks. 3. Further, as per para 15.4 of Master Circular, brokers are required to inform Stock Exchanges of their existing and new bank accounts. However, broker which is also bank may be required to report to Stock Exchange only those bank accounts that are used for their stock broking activities. Further, brokers are required to inform Stock Exchange of existing and new demat accounts. 4. In this regard, representation has been received from exchanges to relax the reporting requirement of demat account for brokers and to align the reporting framework of brokers which are primary dealers with the exemptions provided to brokers which are banks. In view of the same and to enhance regulatory efficiency Page 1 of 4as well as to promote ease of doing business for brokers by harmonizing and relaxing the reporting obligations, it has been decided to modify the relevant paras in Master Circular as under: 15. Enhanced Supervision of Stock Brokers / Depository Participants 15.1…………………… 15.1.1. Uniform nomenclature to be followed by stock brokers for Naming/Tagging of Bank and Demat Accounts and the reporting of such bank accounts to the Stock Exchanges. 15.3. Naming/Tagging of Bank and Demat Accounts by Stock Broker 15.3.4. All demat accounts maintained by stock brokers should be appropriately tagged. Further, it is prescribed that: 15.3.4.5. The provisions at 15.3.4 shall not be applicable to stock brokers which are also primary dealers for their demat accounts which are used exclusively for activities other than stock broking activities. 15.4. Reporting of Bank maintained by Stock Broker 15.4.1……………………………… 15.4.1.1. Stock broker which is also bank or primary dealer, shall be required to report only those bank accounts to the stock exchanges that are used for their stock broking activities. 15.4.2. Deleted 15.4.3. Stock Exchanges and/or depositories, as the case may be, shall ensure the following: Page 2 of 415.4.3.1. All new bank and demat accounts shall be named as per the above given nomenclature. 15.4.3.2 The details regarding bank accounts only shall be communicated by stock broker to the stock exchanges within seven working days of the opening of the account. 15.4.3.3. Closure of any of the reported bank accounts shall be communicated to the stock exchanges within seven working days of its closure. 15.4.3.4 Depositories shall ensure that once the nomenclature for a particular demat account has been assigned by the stock broker, then the same shall not be modified. 15.4.3.5. Any non-compliance regarding nomenclature and reporting of bank accounts and nomenclature of demat accounts shall attract penal action as per the provisions of stock exchanges and/or depositories, as the case may be. 15.4.3.6. Depositories shall provide details of all demat accounts opened/closed by a stock broker to the concerned stock exchanges. The periodicity and mechanism of sharing the said details shall be jointly determined by stock exchanges and depositories. 5. Accordingly, Paras 15.3 and 15.4 of Master Circular for Stock Brokers dated June 17, 2025 stand amended to the extent of para 4 as detailed above. All other provisions specified in Master Circular for Stock Brokers dated June 17, 2025 shall continue to remain applicable. 6. The provisions of this circular shall come into force with effect from April 17, 2026. 7. Stock Exchanges/Depositories are directed to: 7.1. bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites; Page 3 of 47.2. make necessary amendments to the relevant Bye-laws, Rules and Regulations for the implementation of the above decision; 8. This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, and Section 19 of Chapter IV of the Depositories Act, 1996 read with Regulation 51 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets. 9. This circular is available on SEBI website at www.sebi.gov.in under the category: ‘Legal → Circulars’. Yours faithfully, Aradhana Verma General Manager Tel. No: 022 26449633 aradhanad@sebi.gov.in Page 4 of 4