SEBI is tightening its grip on stock brokers, now they cannot create market irregularities

SEBI's new rules: The Securities and Exchange Board of India (SEBI) has taken strict action against stockbrokers indulging in irregularities in the stock market. For this, the market regulator has announced new rules for brokerage firms and stock brokers. However, no rule has been made by SEBI so far to prevent unfair market manipulation by stockbrokers. For the first time, SEBI has taken strict measures to regulate stock brokers. According to the new rules announced by SEBI, brokers and brokerage firms will be held responsible for any irregularities in the market. They have to report to SEBI within 48 hours how the market manipulation took place. According to a notification issued by SEBI, brokerage firms and brokerage firms are responsible for detecting and preventing market irregularities and fraud as per institutional arrangements for brokers. . Its senior management is responsible. For this, brokerage firms should establish a strong monitoring and control system. Along with this, arrangements are made for proper development and deals are communicated to stock brokers. SEBI has listed the possibility of market fraud or market abuse in the notification. Potential problems include trading misrepresentation, price manipulation, front running (using sensitive information), insider trading, mis-selling and unauthorized trading. Stock brokers to inform SEBI within 48 hours In this notification issued on June 27, SEBI must inform stock exchanges within 48 hours of detecting suspicious activity. In addition, brief analysis and action taken report on cases of suspicious activity, fraud and market abuse or 'Nil Report' on half-yearly basis if no such incidents have occurred. Also Read: Kamala Harris Could Become US President, Joe Biden Suffers From Dementia, Brokerage Firms Must Establish Whistleblower Policy, SEBI Notices, Stock Brokerage Firms Must Inform Employees And Other Shareholders About Suspected Fraud, Unfair Or Unethical Activities. Establish and implement a 'whistleblower' policy that provides a confidential avenue for raising concerns. The policy should establish procedures to ensure adequate protection of 'whistleblowers'. To implement these changes, SEBI has amended the Stock Brokers and Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) standards, which came into effect on June 27. Also Read: Do You Have A Fake 500 Rupee Note? Know RBI guidelines, SEBI tightens its grip on stock brokers, now they can't create irregularities in the market appeared first on Prabhat Khabar.