By Irfan | July, 10, 2024
1
To protect against fraud and maintain market integrity, stock brokers should set up trustworthy procedures for keeping an eye on trading activity and internal controls.
2
For the safety of investors and to maintain market fairness, brokers are required to identify and avoid instances of market abuse, such as insider trading, unlawful trading, and price manipulation.
3
With the implementation of a whistleblower policy, SEBI promotes transparency and accountability by enabling staff members to disclose any illegal activity without worrying about facing penalties.
4
Clear escalation procedures should be established by brokers in order to address problems as soon as possible, guaranteeing quick resolution and avoiding potential harm.
5
To improve the security of the financial system, brokers should prohibit the usage of "mule accounts," or accounts used for illegal activities.
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The updated circular does not impact past actions or liabilities, allowing brokers to comply without fearing retrospective consequences.
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The SEBI's Master Circular for Stock Brokers, issued May 22, 2024, compiles all relevant regulations into one comprehensive document, giving brokers all they need to be compliant.