SEBI allows sub-brokers to carry out IPV of clients

SEBI allowed sub-brokers to carry out 'in-person' verification IPV of clients.

Written by: Agencies

1 min readMumbaiOct 25, 2011 08:50 PM IST

Market watchdog Securities and Exchange Board of India SEBI today allowed sub-brokers to carry out 8216;in-person8217; verification IPV of clients.

8220;8230; the subsidiaries of stock exchanges,acting as stock brokers,may rely upon the 8216;in-person8217; verification done by their sub-brokers who are also registered with SEBI as stock brokers of the parent stock exchange for their respective clients,8221; SEBI said in a circular.

However,the ultimate responsibility for 8216;in-person8217; verification would remain with the subsidiaries and they shall obtain the necessary IPV documents for their records,it added.

The subsidiaries of stock exchanges had requested SEBI to consider the 8216;in-person8217; verification carried out by their sub-brokers since they are also the stock brokers of the parent stock exchange and the subsidiaries are not permitted to register direct clients.

In July 2008,SEBI mandated the stock brokers to carry out 8216;in-person8217; verification of their clients by their staff while registering them and also ensure that this function is not outsourced.

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