News

Shares of several listed stock broking and capital market companies moved higher in today’s trade following a key regulatory development from the Securities and Exchange Board of India (Sebi).

The regulator has approved a complete replacement of the Sebi (Stock Brokers) Regulations, 1992, with the new Sebi (Stock Brokers) Regulations, 2025, marking the first comprehensive overhaul of broker regulations in more than 30 years.

On the stock market, Motilal Oswal Financial Services rose 3.92 per cent to Rs 864.50, while Anand Rathi Share and Stock Brokers gained 3.58 per cent to Rs 590. Choice International was up 0.95 per cent at Rs 776.20, and Aditya Birla Capital added 0.40 per cent to Rs 348.25.

Billionbrains Garage Ventures advanced 0.59 per cent to Rs 143.80. Some stocks saw mild pressure, with Angel One down 0.58 per cent at Rs 2,488 and Geojit Financial Services falling 1.37 per cent to Rs 80.08.

The primary trigger for today’s move is Sebi’s focus on simplifying and modernising the regulatory framework for stock brokers.

According to Sebi, the total length of the regulations has been cut sharply, with pages reduced from 59 to 29 and the word count nearly halved from 18,846 to 9,073. This reduction is being seen by the market as a tangible step towards lowering compliance complexity for brokerage firms.

Under the new framework, the regulations have been reorganised into 11 chapters, covering registration, obligations, code of conduct, permitted activities, inspections, and reporting requirements.

Sebi has removed several obsolete provisions, including those related to physical delivery of shares, sub-brokers, and references to the Forward Market Commission, which no longer exists.

From an operational standpoint, Sebi has allowed the maintenance of books of accounts in electronic form and permitted joint inspections. These changes directly impact cost structures, particularly for brokers with a large number of branches and clients.

In addition, Sebi has integrated previously separate schedules into the main regulations, reducing duplication and improving clarity.

Another important change is the rationalisation of criteria for identifying “qualified stock brokers.” Brokers with higher trading volumes or a large number of active clients will be subject to enhanced supervision.

While this increases oversight, it also creates a clearer, uniform framework for large brokers, which the market views as reducing regulatory uncertainty.