Stock brokers and depository participants (DPs) will now have to provide all necessary information on their websites with effect from Aug 16, 2023.
This will be done to ensure greater transparency with investors. This is one of the latest diktats issued by the markets regulator Securities Exchange Board of India (SEBI) in a circular released on Feb 15.
The regulator stated that a designated website will bring in transparency and help the investors to keep themselves well informed about the various activities of the stock broker. This will be done in a bid to provide better services to the investors.
The website needs to carry the following information:
1. Basic details such as registration number, address of head office and branches.
2. Name and contact details such as email IDs of all key managerial personnel including compliance officer.
3. Step by step procedures for opening an account, filing a complaint on a designated email ID and finding out the status of the complaint.
4. Details of authorised persons.
The brokers and depository participants (DPs) are also meant to report the URL of the website to stock exchanges/depositories within a week of this circular coming into effect on Aug 16 this year. and any change made in the URL will be reported to stock exchanges within three days of such changes.
Now it is the responsibility of stock markets and depositories to bring these provisions to the notice of stock brokers and depository participants and disseminate the same on their websites.
They are supposed to make amendments to the relevant bye-laws, rules and regulations for the implementation of these provisions.
Introduction of issue summary document
Apart from websites for stock brokers, SEBI also released a circular relating to the introduction of issue summary document (ISD).
To facilitate consumption of data by stakeholders such as researchers, policy makers, market analysts, and market participants, in respect of public issues, further issues, buyback, offers — it has been decided to make available relevant information and data points at the Stock Exchanges and Depositories in a structured manner.
Accordingly, after consultation with the stakeholders, an Issue Summary Document (ISD) has been designed.
