The Ministry of Finance fixes the old stock market base to increase clarity and reduce compliance with the mediator

In a move aimed at harmonizing the organizational standards with the advanced trade scene of the financial markets in India, the Ministry of Economic Affairs (DeA) amended Rule 8 of the rules of securities contracts (organization) (SCR), 1957. It was announced on May 19 via the official version, the amendment was designed to provide clarity and greater coordination of business.

The review comes in the wake of a discussion paper issued by the Drug Control Department in September 2024, which raised concerns about the mysterious language in Article 8 – especially the non -specific range of the term “any work”. The paper noted that this lack of clarity had left the base open to different interpretations.

According to a press release, the Drug Enforcement Administration has now made the official character to the changes by notifying the GSR 318 (E). Rule 8, which determines the eligibility criteria for recognized stock exchange members, is previously prohibited from engaging in any commercial activity that exceeds derivatives in securities or derivatives of goods – unless he behaves as a mediator or an agent and without incurring personal financial responsibility.

The amendment reflects the recognition of the drug control department of the increasing complexity and interconnection within the financial sector, as well as the advanced roles of the brokers. “Given the growth in the scope of the financial sector, its interdependence and the development of the nature of businesses over time, the statement said,” The drug control department has felt that it is necessary to review the suitability of the guarantees included in the rules. “

The changes follow the interests of the stakeholders and are part of the broader initiative of the government to simplify the regulations. The updated base aims to ensure that brokers can work efficiently without undermining the organizational framework, and thus supporting continuous growth and integrity of capital markets in India.