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Journalism of Courage
The capital markets regulator SEBI (Securities and Exchange Board of India) has recently asked stock brokers and depository participants to maintain a website that will contain basic details such as their registered address, the registration number, and give customers relevant information right from the process of opening an account to filing a complaint.
The market regulator feels that a designated website will bring transparency and help the investors to keep themselves well informed about the various activities of the stock brokers and depository participants. Sebi has mandated these entities to maintain a designated website considering the advancement in technology and the need to provide better services to the investors.
A stock broker is a member of a recognised stock exchange, who is permitted to do trades on the screen-based trading system of different stock exchanges. He is enrolled as a member of the concerned exchange and is registered with Sebi. As of February 16, 2023, there are 5,340 registered stock brokers registered with Sebi.
A depository is an organisation which holds securities (like shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form at the request of the investors through a registered depository participant.
As of February 16, 2023, a total of 919 depository participants (639 at CDSL and 280 at NSDL) are registered with Sebi. A depository participant is an agent of the depository – National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd CDSL – through which it interfaces with the investor and provides depository services.
Through the website, investors will be able to get all relevant information on stock brokers and depository participants such as their registration number, registered address of head office and branches, names, contact details such as email ids etc. of all key managerial personnel (KMPs) including compliance officer and details of the authorised persons.
Investors will also come to know the step-by-step procedures for opening an account, filing a complaint and finding out the status of the complaint.
These websites will also display information which has been mandated by Sebi or stock exchanges and depositories.
Sebi has asked stock brokers and depository participants to put in place the website before August 16, 2023. The URL to the website will have to be reported to the stock exchanges and depositories by August 23, 2023. The markets regulator has also asked these entities to report any modification in the URL to stock exchanges or depositories within 3 days of such changes.
