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Informist, Monday, Aug. 10, 2026

 

MUMBAI –  The Securities and Exchange Board of India Monday clarified that stock brokers cannot undertake activities as a non-banking financial company, even if they are registered with the Reserve Bank of India. Stock brokers can currently carry out only two types of activities under the regulatory framework of other regulators – undertake activities in the negotiated dealing system-order matching platform for trading in government securities and in securities market activities in the designated international financial services centres – the regulator said in response to a broker's application under the informal guidance scheme.

 

The negotiated dealing system-order matching platform for trading in government securities is regulated by the RBI, while trading in international financial services centres is regulated by the International Financial Services Centres Authority.

 

SEBI said brokers are currently permitted to undertake activities in the RBI-regulated negotiated dealing system-order matching platform for trading in government securities, and in securities market activities in the designated international financial services centres falling under the regulatory framework of the International Financial Services Centres Authority.

 

Ahmedabad-based broker Relitrade Stock Broking Pvt. Ltd. had filed the informal guidance request with SEBI. The broker had said it intended to house its existing stock broking business and proposed new NBFC operations within the same corporate entity. The broker had, therefore, sought clarity on the interpretation of SEBI's stock brokers regulations, which permitted stock brokers to carry out an activity under the regulatory framework of other financial sector regulators.

 

SEBI told the broker that it has not issued any framework or circular under the stock broker regulations for undertaking activities as RBI-registered NBFCs. The market regulator also said stock brokers are not authorised to engage "in any business other than that of securities except as a broker or agent not involving any personal financial liability."  End

 

Reported by Rajesh Gajra

Edited by Saji George Titus

 

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