Stock Brokers and Clearing Members

What this module covers

Stock Brokers and Clearing Members operate under the SEBI (Stock Brokers) Regulations, 2026 (notified 7 January 2026), which repealed and replaced the 1992 Regulations with a structural reset of the broking framework. The core client-protection rule is strict segregation: client money and securities must be kept separate from a broker’s own funds, and using one client’s collateral to support another client’s trading or margin obligations is now treated as a direct regulatory violation rather than an internal risk-management lapse. Net-worth and capital-adequacy requirements scale with the nature and extent of a broker’s activities, and every broker must run a sound risk-management system with margin monitoring proportionate to the risk it is carrying.

Investor grievance handling was also tightened: the redressal period is now 21 days (down from one month under the 1992 Regulations), and every broker must designate a compliance officer responsible for both compliance monitoring and grievance redressal. The 8 control pages below turn this framework into operational checkpoints — confirming registration and scope, whether as broker, clearing member or both (P-01) through to inspection-readiness (P-08) — covering client-asset segregation, margin and risk controls, and the grievance-redressal timeline.

Control pages

Official sources

• SEBI — Stock Brokers Regulations, 2026 (notified 7 January 2026)

Current law status: the 2026 Regulations are in force as of this review date, having replaced the 1992 Regulations. Verify for further amendments before relying on this page for a live compliance decision.