Sebi plans to grade brokers
Mumbai: The Securities and Exchange Board of India (Sebi) will soon introduce a grading system for stock brokers. The regulator has begun discussions with leading credit rating agencies for this. There are 750 brokers registered with the Bombay Stock Exchange (BSE) and around 910 with the National Stock Exchange (NSE).

Last week the capital market watchdog announced its intention to get public issues graded by rating agencies.

Executives at credit rating agency Crisil said Sebi would be able to prioritise its surveillance activities based on the grades assigned.

Market players feel that grading of brokers will spur growth of professionally-managed entities as higher grading will attract more business opportunities. They also feel that the grading of brokers will help bolster risk management systems and procedures as these are vital rating criteria.
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