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Bengaluru, 20 March 2024 – Certain stock brokers, due to various factors like their size, trading volumes and amount of clients’ funds handled by them, occupy a significant position in the Indian securities market, leading to concentration of activity among few stock brokers. In order to further strengthen the compliance and monitoring requirements relating to such stock brokers and to ensure efficient functioning of securities market, SEBI vide Circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/24 dated February 06, 2023, on “Enhanced obligations and responsibilities on Qualified Stock Brokers (QSBs)” enumerated the following four parameters for designating certain stock brokers, as QSBs.
1.1. the total number of active clients of the stock broker;
1.2. the available total assets of clients with the stock broker;
1.3. the trading volumes of the stock broker (excluding the proprietary trading volume of the stock broker);
1.4. the end of day margin obligations of all clients of a stock broker (excluding the proprietary margin obligation).
Based on the aforementioned parameters, the first list of QSBs was issued vide Joint Press Release dated March 03, 2023.
SEBI vide Circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2024/14 dated March 11, 2024, on “Measures to instill trust in securities market – Expanding the framework of Qualified Stock Brokers (QSBs) to more stock brokers” has extended the framework of QSBs to more stock brokers and enumerated the following parameters, in addition to the above mentioned four parameters:
1.5. the proprietary trading volumes of the stock broker who are engaged in clients’ trading;
1.6. compliance score of the stock broker, derived by assigning highest score to stock brokers with highest penalties levied across Exchanges; and
1.7. 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 Circular, the following is the list of designated QSBs in alphabetical order and not indicative of ranking.
List of QSBs based on the parameters mentioned at para 1.1 to 1.5 above and para 4.1.1 to 4.1.5 of SEBI Circular dated March 11, 2024
S. No.
Name of the Stock Broker
1
Angel One Limited
2
Globe Capital Market Limited
3
HDFC Securities Ltd.
4
ICICI Securities Limited
5
Kotak Securities Ltd.
6
Motilal Oswal Financial Services Limited
7
Nextbillion Technology Private Limited
8
NJ India Invest Private Limited
9
Rajvi Stock Broking Private Limited
10
RKSV Securities India Private Limited
11
Zerodha Broking Limited
List of QSBs based on the parameter mentioned at para 1.6 above and para 4.1.6 of SEBI Circular dated March 11, 2024
S. No.
Name of the Stock Broker
1
5Paisa Capital Limited
2
Angel One Limited
3
ICICI Securities Limited
4
IIFL Securities Limited
5
Motilal Oswal Financial Services Limited
List of QSBs based on the parameter mentioned at para 1.7 above and para 4.1.7 of SEBI Circular dated March 11, 2024
S. No.
Name of the Stock Broker
1
Angel One Limited
2
Finvasia Securities Private Limited
3
ICICI Securities Limited
4
Motilal Oswal Financial Services Limited
5
Zerodha Broking Limited
These QSBs shall be required to meet enhanced obligations and discharge additional responsibilities as specified in “Enhanced Obligations and Responsibilities on Qualified Stock Brokers (QSBs) – Comprehensive Operating Guidelines” issued vide NSE & BSE Circulars dated June 01, 2023, and MSE, MCX and NCDEX Circulars dated June 02, 2023.
The effective date of implementation for different QSBs based on parameter by which they are designated as QSBs has been prescribed in the table below:
Parameters based on which a Stock Broker is designated as QSB
Applicability of the Circular*
Parameters mentioned at para 1.1 to 1.5 above (i.e. para 4.1.1 to 4.1.5 of the SEBI Circular dated March 11, 2024)
June 01, 2024
Parameters mentioned at para 1.6 and 1.7 above (i.e. para 4.1.6 to 4.1.7 of the SEBI Circular dated March 11, 2024)
September 01, 2024
*For QSBs which are common between the aforementioned lists, the date of applicability of the Circular shall be June 01, 2024.
Stock Brokers designated as QSBs vide Joint Press Release dated March 03, 2023, and not included in the list above, 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 Market Infrastructure Institutions (MIIs), in consultation with SEBI.
