Instrument
Notification No. SEBI/LAD-NRO/GN/2026/291, Mumbai, 7 January 2026.
Commencement: Gazette publication.
SEBI Hub › Provision maps › Stock Brokers 2026
Controlled legal boundary: the Regulation numbers and displayed headings below were checked against the English Gazette text published on 7 January 2026. Summaries are Finin2min analytical descriptions. Provisions marked “no printed heading visible” use an editorial descriptor only.
Architecture
51
numbered Regulations · 11 Chapters · no standalone Schedule appended to the Gazette text.
Source chain
Review state
SECOND REVIEW OPEN
Full sub-regulation, proviso, explanation, table, cross-reference and circular lineage review remains required before indexation.
Chapter IChapter IIChapter IIIChapter IVChapter VChapter VIChapter VIIChapter VIIIChapter IXChapter XChapter XI
Chapter I: Regulations 1–3 · PreliminaryChapter II: Regulations 4–14 · Registration of Stock BrokersChapter III: Regulations 15–20 · General Obligations and ResponsibilitiesChapter IV: Regulations 21–26 · Institutional Mechanism for Prevention and Detection of Fraud or Market AbuseChapter V: Regulations 27–32 · Procedure for InspectionChapter VI: Regulations 33–33 · Procedure for Action in Case of DefaultChapter VII: Regulations 34–35 · Power to Relax Strict Enforcement of the RegulationsChapter VIII: Regulations 36–39 · Code of ConductChapter IX: Regulations 40–46 · Payment of Fees by Stock Brokers / Clearing Members / Self-Clearing MembersChapter X: Regulations 47–48 · Networth and Deposit Requirements for Stock Brokers / Clearing Members / Self-Clearing MembersChapter XI: Regulations 49–51 · Miscellaneous
| Reg. | Chapter | Gazette heading / controlled descriptor | Finin2min legal function | English Gazette page(s) | Text marker | Workflow |
|---|---|---|---|---|---|---|
| 1 | I Preliminary | Short title and commencement PRINTED HEADING | Names the 2026 Regulations and brings them into force on Gazette publication. | 26 | commencement | Decision guide |
| 2 | I Preliminary | Definitions PRINTED HEADING | Defines the core regulated roles, control concepts, market-abuse terms and cross-referenced expressions. | 26–28 | definitions; explanation | Decision guide |
| 3 | I Preliminary | Applicability of provisions to clearing member and certain clarifications PRINTED HEADING | Clarifies when broker and clearing-member registrations overlap and which Chapters apply mutatis mutandis. | 28–29 | explanation; cross-application | Decision guide |
| 4 | II Registration of Stock Brokers | Application for registration PRINTED HEADING | Requires an exchange-routed application, eligibility examination, recommendation and prescribed fee. | 29 | application; 30-day exchange forwarding | Decision guide |
| 5 | II Registration of Stock Brokers | Furnishing of information and clarification PRINTED HEADING | Permits SEBI to seek information, clarifications and personal appearance of the applicant or designated director. | 29 | information power | Decision guide |
| 6 | II Registration of Stock Brokers | Consideration of application for grant of certificate PRINTED HEADING | Sets the eligibility assessment, infrastructure, experience, disciplinary, fit-and-proper, networth and resident-designated-director tests. | 29–30 | eligibility; transition period | Decision guide |
| 7 | II Registration of Stock Brokers | Grant of certificate PRINTED HEADING | Authorises SEBI to grant the certificate subject to terms and communicate the grant to the exchange. | 30 | grant | Decision guide |
| 8 | II Registration of Stock Brokers | Procedure where certificate is refused PRINTED HEADING | Requires hearing, written reasons, communication and a reconsideration route. | 30 | hearing; 30-day reconsideration | Decision guide |
| 9 | II Registration of Stock Brokers | Payment of fees PRINTED HEADING | Links grant and continuation to Chapter IX fees and permits a limited additional payment period. | 30 | fees; extension | Decision guide |
| 10 | II Registration of Stock Brokers | Conditions of certificate PRINTED HEADING | Prescribes continuing membership, approvals, fees, grievance, conduct, networth and material-change duties. | 30–31 | explanation; 21-day grievance control | Decision guide |
| 11 | II Registration of Stock Brokers | Surrender of certificate PRINTED HEADING | Requires a prescribed surrender application and compliance with SEBI conditions. | 31 | surrender | Decision guide |
| 12 | II Registration of Stock Brokers | Other permitted activities PRINTED HEADING | Allows activity under another financial-sector regulator or specified authority, subject to SEBI-prescribed boundaries. | 31 | explanation; cross-regulator activity | Decision guide |
| 13 | II Registration of Stock Brokers | Incidental advice PRINTED HEADING | Permits incidental investment advice to broking clients subject to the Investment Advisers framework. | 31–32 | cross-regulation | Decision guide |
| 14 | II Registration of Stock Brokers | Underwriting activity PRINTED HEADING | Permits underwriting from own funds and imposes exposure, agreement and subscription-performance controls. | 32 | 45-day subscription control; agreement terms | Decision guide |
| 15 | III General Obligations and Responsibilities | To maintain proper books of account, records, etc. PRINTED HEADING | Lists core transaction, client, ledger, banking, securities, contract-note, margin and account-opening records. | 32–33 | record list; EOP and underwriting overlays | Decision guide |
| 16 | III General Obligations and Responsibilities | Period of maintenance of books of account and records PRINTED HEADING | Requires the Regulation 15 books and records to be retained for at least eight years. | 33 | 8-year retention | Decision guide |
| 17 | III General Obligations and Responsibilities | Appointment of compliance officer PRINTED HEADING | Requires an independent compliance officer responsible for legal monitoring and investor grievances. | 33–34 | independent reporting | Decision guide |
| 18 | III General Obligations and Responsibilities | Other obligations and responsibilities for stock broker PRINTED HEADING | Consolidates client-asset protection, risk, audit, KYC, confidentiality, cyber, grievance, advertising, outsourcing, compliance, charter and execution duties. | 34–35 | sub-headings within regulation; specified overlays | Decision guide |
| 19 | III General Obligations and Responsibilities | Enhanced obligations and responsibilities for qualified stock brokers PRINTED HEADING | Allows designation of systemically important qualified brokers and imposes enhanced governance, risk, capacity, wind-down, cyber and investor-service duties. | 35 | designation parameters; specified enhanced duties | Decision guide |
| 20 | III General Obligations and Responsibilities | Activities restricted or prohibited for stock broker PRINTED HEADING | Prohibits guaranteed-return schemes, unauthorised portfolio/collective activity, impermissible activities and client cash acceptance. | 35–36 | prohibitions | Decision guide |
| 21 | IV Institutional Mechanism for Prevention and Detection of Fraud or Market Abuse | Systems for surveillance of trading activities and internal controls PRINTED HEADING | Requires surveillance and internal-control systems to detect, prevent and report potential fraud or market abuse. | 36 | surveillance systems | Decision guide |
| 22 | IV Institutional Mechanism for Prevention and Detection of Fraud or Market Abuse | Proportional calibration of regulatory requirements NO PRINTED HEADING VISIBLE | Permits SEBI or the exchange to calibrate requirements by business nature, size, operations and transaction complexity. | 36 | editorial descriptor only | Decision guide |
| 23 | IV Institutional Mechanism for Prevention and Detection of Fraud or Market Abuse | Obligations with respect to prevention and detection of fraud or market abuse PRINTED HEADING | Requires documented policies, responsibilities, periodic review, alert thresholds, proprietary-account controls and suspicious-activity detection. | 36–37 | annual review; reporting mechanism | Decision guide |
| 24 | IV Institutional Mechanism for Prevention and Detection of Fraud or Market Abuse | Escalation and reporting mechanisms PRINTED HEADING | Requires quarterly compliance review, prompt reporting, half-yearly analysis and governance escalation of deviations. | 37 | quarterly and half-yearly controls | Decision guide |
| 25 | IV Institutional Mechanism for Prevention and Detection of Fraud or Market Abuse | Whistle blower policy PRINTED HEADING | Requires a documented protected channel and specified escalation for concerns involving directors, senior personnel or employees. | 37 | confidential channel | Decision guide |
| 26 | IV Institutional Mechanism for Prevention and Detection of Fraud or Market Abuse | Accountability PRINTED HEADING | Makes the audit committee, board or analogous governing body accountable for enforcing Chapter IV. | 37 | governing-body accountability | Decision guide |
| 27 | V Procedure for Inspection | Board’s right to inspect PRINTED HEADING | Authorises SEBI inspection of books and compliance, including joint inspections with market infrastructure institutions. | 37–38 | inspection power | Decision guide |
| 28 | V Procedure for Inspection | Procedure for inspection PRINTED HEADING | Requires reasonable notice unless SEBI records reasons to dispense with notice in investor or public interest. | 38 | notice; recorded-reason exception | Decision guide |
| 29 | V Procedure for Inspection | Obligations of stock broker on inspection by the Board PRINTED HEADING | Requires assistance, production, access, facilities, copies and examination of relevant personnel. | 38 | evidence and access duties | Decision guide |
| 30 | V Procedure for Inspection | Submission of report to the Board PRINTED HEADING | Requires the inspecting authority to submit its report to SEBI as soon as possible. | 38 | inspection report | Decision guide |
| 31 | V Procedure for Inspection | Action on inspection or investigation report PRINTED HEADING | Allows SEBI to take appropriate action under securities law or other applicable law after considering the report. | 38–39 | post-report action | Decision guide |
| 32 | V Procedure for Inspection | Appointment of auditor PRINTED HEADING | Allows an appointed auditor to inspect or investigate and permits recovery of costs where adverse findings lead to action. | 39 | auditor powers; cost recovery | Decision guide |
| 33 | VI Procedure for Action in Case of Default | Liability for contravention of the Act, rules or the regulations PRINTED HEADING | Creates exposure for statutory, regulatory, circular and guideline violations, including excess brokerage, non-cooperation and market misconduct. | 39–40 | default triggers | Decision guide |
| 34 | VII Power to Relax Strict Enforcement of the Regulations | Exemption from enforcement of the regulations in special cases PRINTED HEADING | Permits time-bound exemption for regulatory-sandbox innovation subject to specified conditions. | 40 | sandbox exemption | Decision guide |
| 35 | VII Power to Relax Strict Enforcement of the Regulations | Power to relax strict enforcement of the regulations on the basis of application PRINTED HEADING | Allows reasoned relaxation for precedence, hardship, technicality, uncontrollable factors or class irrelevance, with application and confidentiality controls. | 40–41 | application; fee; confidentiality up to 180 days | Decision guide |
| 36 | VIII Code of Conduct | General principles PRINTED HEADING | Sets integrity, diligence, fairness, market-conduct and competence standards. | 41 | code of conduct | Decision guide |
| 37 | VIII Code of Conduct | Duty to the investor PRINTED HEADING | Requires prompt execution, communication, payment/delivery, contract notes, confidentiality and fair client treatment. | 41–42 | investor duties | Decision guide |
| 38 | VIII Code of Conduct | Conflict of interest PRINTED HEADING | Requires avoidance or disclosure of conflict and prohibits placing the broker’s interest above the client’s. | 42 | conflict control | Decision guide |
| 39 | VIII Code of Conduct | Duty as an underwriter PRINTED HEADING | Adds ethical, disclosure, confidentiality, transfer and anti-manipulation duties when the broker acts as underwriter. | 42–43 | underwriting conduct | Decision guide |
| 40 | IX Payment of Fees by Stock Brokers / Clearing Members / Self-Clearing Members | Applicability PRINTED HEADING | Applies the fee Chapter to brokers and clearing/self-clearing members in specified segments from registration. | 43 | fee perimeter | Decision guide |
| 41 | IX Payment of Fees by Stock Brokers / Clearing Members / Self-Clearing Members | Charge of fees PRINTED HEADING | Sets segment-wise transaction fees, annual clearing-member fees and the non-refundable application fee. | 43–45 | fee tables; explanations | Decision guide |
| 42 | IX Payment of Fees by Stock Brokers / Clearing Members / Self-Clearing Members | Manner of payment and recovery PRINTED HEADING | Requires exchanges to collect and remit fees, maintain registers and furnish returns and information. | 45–46 | explanation; monthly remittance | Decision guide |
| 43 | IX Payment of Fees by Stock Brokers / Clearing Members / Self-Clearing Members | Separate annual fee for a broker acting as clearing or self-clearing member NO PRINTED HEADING VISIBLE | Requires category-wise annual fees to be paid separately through the SEBI payment gateway. | 46 | editorial descriptor only | Decision guide |
| 44 | IX Payment of Fees by Stock Brokers / Clearing Members / Self-Clearing Members | Primary fee liability, recovery and delayed-payment interest NO PRINTED HEADING VISIBLE | Preserves direct fee liability, permits recovery and imposes one percent monthly interest for delay. | 46 | editorial descriptor only | Decision guide |
| 45 | IX Payment of Fees by Stock Brokers / Clearing Members / Self-Clearing Members | Meaning of financial year for the fee Chapter NO PRINTED HEADING VISIBLE | Defines the financial year as 1 April to 31 March for Chapter IX. | 46–47 | editorial descriptor only | Decision guide |
| 46 | IX Payment of Fees by Stock Brokers / Clearing Members / Self-Clearing Members | Mutatis mutandis application to clearing corporations and clearing members NO PRINTED HEADING VISIBLE | Extends Regulations 42–45 obligations to clearing corporations and clearing/self-clearing members. | 47 | editorial descriptor only | Decision guide |
| 47 | X Networth and Deposit Requirements for Stock Brokers / Clearing Members / Self-Clearing Members | Minimum networth requirements TABLE OR CHAPTER LABEL | Sets base/variable networth requirements and computation principles across segments. | 47–48 | networth table; explanations 1 and 2 | Decision guide |
| 48 | X Networth and Deposit Requirements for Stock Brokers / Clearing Members / Self-Clearing Members | Deposit requirements for stock brokers / clearing members PRINTED TABLE HEADING | Sets segment-wise minimum deposits, place of maintenance and a debt-segment exception. | 48 | deposit table; explanation | Decision guide |
| 49 | XI Miscellaneous | Power to remove difficulties PRINTED HEADING | Allows SEBI to issue directions through guidance notes, circulars or guidelines to resolve interpretive or application difficulties. | 48–49 | guidance power | Decision guide |
| 50 | XI Miscellaneous | Power to specify procedures, etc. and issue clarifications PRINTED HEADING | Allows SEBI to specify implementation norms, procedures, processes, manners and guidelines by circular. | 49 | enabling circular power | Decision guide |
| 51 | XI Miscellaneous | Repeal and Savings PRINTED HEADING | Repeals the 1992 Regulations while preserving prior actions, pending applications, accrued rights/liabilities and corresponding references. | 49 | repeal; savings; transition | Decision guide |