Stock exchanges to include list of active clients in report: SEBI

India Infoline News Service | Mumbai |

The objective is to bring more transparency in the disclosure of complaint redressal status of the stock brokers on the website of stock exchange

Capital market regulator SEBI (Securities and Exchange Board of India) has directed stock exchanges to include information on the number of active clients of each broker and the percentage of complaints received against active clients in their reports on their Web sites.

The objective is to bring more transparency in the disclosure of complaint redressal status of the stock brokers on the website of stock exchange, in consultation with the stock exchanges and the associations of stock brokers, SEBI said in a notification on Monday.

Active clients are those who have traded at least once in the last year, said SEBI. This would ascertain the efficiency and increase transparency of the grievance redressal process at the broker and stock exchange levels.

The stock exchanges shall also disclose separately in a prominent manner (i) total number of complaints received against all the stock brokers of the Exchange, number of their active clients and its percentage and (ii) overall market redressal rate by dividing total number of complaints redressed with total number of complaints received against all stock brokers of the Exchange, SEBI added.

These modifications will result in disclosure of complaint redressal rate of individual stock broker and also overall redressal rate at stock exchange level. This will indicate the efficiency of complaint redressal process, SEBI further said.
 

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