This has reference to SEBI Circulars No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/24 dated February 06, 2023 and SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2024/14 dated March 11, 2024 on “Enhanced obligations and responsibilities on Qualified Stock Brokers (QSBs)”, wherein SEBI enumerated the parameters for designating certain stock brokers, having regard to their size and scale of operations, likely impact on investors and securities market, as well as governance and service standards, as Qualified Stock Brokers (QSBs).
The following parameters were considered for designating a stock broker as QSB, on an annual basis:
- the total number of active clients of the stock broker;
- the available total assets of clients with the stock broker;
- the trading volumes of the stock broker (excluding the proprietary trading volume of the stock broker);
- the end of day margin obligations of all clients of a stock broker (excluding the proprietary margin obligation);
- the proprietary trading volumes of the stock broker who are engaged in clients’ trading;
- compliance score of the stock broker, derived by assigning highest score to stock brokers with highest penalties levied across Exchanges; and
- grievance redressal score of the stock broker, derived by assigning highest score to stock brokers with highest count of investor complaints received across Exchanges.
Accordingly, on the basis of the parameters defined in the aforesaid Circulars, the list of designated Qualified Stock Brokers (QSBs) is enclosed herewith as Annexure A (list is in alphabetical order and is not indicative of ranking).
SEBI vide para 4.5 and 4.6 of Circular dated March 11, 2024, has facilitated stock brokers to voluntarily get designated as QSBs. Accordingly, stock brokers who have not qualified to become QSB by virtue of parameters enumerated above, may apply to the Exchange, for voluntary designation as QSB. All applications for voluntary designation as QSB may be submitted to voluntaryqsb@bseindia.com latest by April 30, 2025.
QSBs shall be required to meet enhanced obligations and discharge additional responsibilities as specified in Comprehensive Operating Guidelines issued vide Exchange Notice 20230601-54 dated June 01, 2023 and 20240314-17 dated March 14, 2024.
Stock Brokers designated as QSBs vide Exchange Notice 20230303-66 dated March 03, 2023 and 20240720-1 dated July 20, 2024 and 20240830-47 dated August 30, 2024 and not included in Annexure A, shall continue to comply with the enhanced obligations and responsibilities, for an additional period of 3 financial years or such time, as may be specified by the Exchange, in consultation with SEBI.
Members are requested to take note of the contents of the Circular and comply.
In case of any query, please contact us on details given as under:
For and on behalf of BSE Ltd.
Sandeep Sharma Kaustubh Mundada
Asst. General Manager Asst. General Manager
Member Oversight Member Oversight
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