SEBI Proposes Overhaul Of Stock Exchange Trading Rules

SEBI has floated a proposal to revamp the trading-related regulatory framework for stock exchanges. The initiative seeks to modernize existing rules, reduce overlapping requirements, and streamline compliance processes for brokers, clearing members, and other market participants. The proposed changes are part of SEBI’s broader effort to enhance efficiency and integrity in India’s capital markets.  

The regulator has also introduced updated stock broker regulations, replacing the three-decade-old framework from 1992. These new rules emphasize stricter compliance, prohibit informal pooling of money, and mandate mapping every trade to a unique client code. Analysts believe the reforms will strengthen investor protection and improve operational transparency.  

Regulatory Overhaul  
SEBI proposes simplification of trading rules to reduce duplication and compliance burden.  

Broker Regulations  
New framework replaces 1992 rules, focusing on stricter compliance and transparency.  

Investor Protection  
Measures include banning guaranteed return schemes and informal pooling of funds.  

Key Highlights  

• SEBI proposes comprehensive revamp of trading framework  
• New stock broker regulations introduced in 2026  
• Focus on ease of doing business and compliance simplification  
• Enhanced investor protection through stricter rules  

Future Outlook  
The proposed changes are expected to improve efficiency, reduce regulatory complexity, and foster greater trust in India’s capital markets, benefiting both investors and intermediaries.  

Sources: Reuters, Business Today, LinkedIn Analysis