Sebi to tighten screws on broker directors
Mumbai: The Securities and Exchange Board of India (Sebi) has decided to tighten the regulatory norms on broker directors and key functionaries at stock exchanges. In a draft report, the regulator has outlined stringent norms to prevent areas of conflict of interest and put forth a proposal barring broker directors from indulging in proprietary trading in the course of their tenure.

The inter-exchange surveillance group will discuss the Sebi proposal on Friday and also decide on expanding the list of 200 scrips, where 16 per cent circuit filter limits are applicable. The committee will also standardise norms, which allow stock exchanges to lift the circuit filter on scrip. The Sebi directives have been made in the wake of several instances of conflicts between broker directors and exchange administration, as also instances in which broker directors have allegedly misused their position.
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