SEBI amends procedure to surrender sub-broking ticket

Our Bureau Mumbai | Updated on August 27, 2012

The Securities and Exchange Board of India has said sub-brokers wishing to become authorised persons (of the same broker and the same exchange) are not required to advertise in newspaper regarding surrender of sub-broker registration.

Sub-brokers have to confirm to stock exchanges in an undertaking that they would inform their clients about surrender of registration and approval as an authorised person (AP).

Stock exchanges and affiliating brokers have to publish details of those sub-brokers who have surrendered their registration or re-registered as APs on their Web sites.

Earlier, sub-brokers had to apply for surrender of registration to SEBI, along with a de-recognition letter from the exchange. A certificate from the affiliating broker that the sub-broker has been disabled from trading had to be enclosed.

In addition, the sub-broker had to attach copies of two advertisements issued by the affiliating broker informing investors/ general public about the cancellation of his sub-brokership.

The original certificate of registration and undertaking that the sub-broker would be liable for all liabilities and obligations that have taken place before the surrender was also expected to be submitted.

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Published on August 27, 2012
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