Quick summary
SEBI relaxes certain reporting requirements for stock brokers and does away with the requirement of reporting of demat accounts.
Who is affected
Stock brokers, particularly those that are also primary dealers, are affected by these relaxations.
What changes
The modifications include:
- Relaxation of reporting requirements for demat accounts for stock brokers which are also primary dealers, for accounts used exclusively for activities other than stock broking.
- Stock brokers that are also banks or primary dealers are required to report only those bank accounts to stock exchanges that are used for their stock broking activities.
- The requirement for stock brokers to inform stock exchanges of their existing and new demat accounts has been modified, with depositories now responsible for providing details of demat accounts opened or closed by a stock broker to the concerned stock exchanges.
Action items
- Stock exchanges and depositories must ensure that all new bank and demat accounts are named according to the specified nomenclature.
- Stock brokers must communicate details regarding bank accounts to stock exchanges within seven working days of opening or closing an account.
- Depositories must ensure that once a nomenclature for a demat account has been assigned by a stock broker, it is not modified.
Key dates-deadlines
- The provisions of this circular come into force with effect from April 17, 2026.
- Stock brokers must report bank account details to stock exchanges within seven working days of opening or closing an account.
- Depositories must provide details of demat accounts to stock exchanges as per a mechanism to be jointly determined by stock exchanges and depositories.
Source reference
SEBI Circular HO/38/11/(1)2026-MIRSD-POD/I/7656/2026, dated March 23, 2026.