SEBI/HO/MIRSD/MIRSD -PoD/P/CIR/2025/113
regulations · 1992 · State unknown
Parent: THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 (7c4c1f5343adab106c3a94cafc08a5ecf5957ae7)
Text
CIRCULAR SEBI/HO/MIRSD/MIRSD -PoD/P/CIR/2025/113 To, All recognized Stock Exchanges All Depositories All Clearing Corporations Madam / Sir, Sub: Ease of doing business (EODB) - Policy for joint annual inspection by MIIs – information sharing mechanism– action by Lead MII SEBI vide circular CIR/HO/MIRSD/MIRSD2/CIR/P/2017/73 dated June 30, 2017(hereinafter mentioned as 'Circular') and para 14 of Master Circular for stock brokers dated June 17, 2025 (hereinafter mentioned as 'Master Circular'), specified provisions pertaining to policy for annual inspection of members. Presently, annual inspection of stock brokers/ depository participants ('Brokers'/DPs) are conducted by each of the MIIs (Stock Exchanges/Depositories/Clearing Corporations) separately. Such an exercise unwarrantedly taxes the intermediaries due to frequent visits for inspections by different MIIs which result in disproportionate diversion of resources leading to disruption in the routine operations of the entities . Accordingly, in order to ensure ease of doing business and to take comprehensive view of entity's operations across all MIIs along with optimum utilization of resources, the following has been decided Joint annual inspection instead of separate inspections by MIIs: Entities selected for annual inspections shall be inspected for all segments jointly by all exchanges along with their depository participant (DP) operations (if broker is also registered as DP) and clearing activity (if the broker is August 07 , 2025 undertaking clearing for other brokers). DP operations and clearing activity undertaken by entities shall be inspected by Depositories and Clearing Corporations, respectively. This will ensure that entities selected by MIIs for their annual inspection shall be inspected jointly by all MIRule TOC
10 · MIIs are directed to make amendments to the relevant bye-laws, rules and regulations for the implementation of above directions.
11 · 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.
12 · This circular is available on SEBI website at www.sebi.gov.in under the category: 'Legal → Circulars'.
