The move also points to the regulator’s intention not to micro manage the market as it has already created a set up where it holds the main broker responsible for the faults of their affiliated sub-brokers. In September last, Sebi had made it mandatory for the client of the sub-broker to enter into a tri-partriate agreement with the main broker, following which if the client of the sub-broker is aggrieved with him, it is the duty of the main broker to resolve the problem.

Sebi has already specified the criteria for scrutiny of the applications of registration for sub-brokers. Based on these criteria, bourses as the first level regulators forward the applications to Sebi for final approval. Sebi once again follows the process and in the duplication of the processes, the approval gets delayed. Brokers’ associations were also pressing for the removal of duplication of processes, which has now been accepted by the Sebi board.