Sebi mandates brokers, depositories to maintain websites

With an aim to bring in transparency, capital markets regulator Sebi on Thursday mandated all stock brokers and depositories to maintain websites.

A designated website brings transparency and helps the investors to keep themselves well informed about the various activities of the Stockbroker (SB) and Depository participant (DP). In view of the same, considering the advancement in technology and the need to provide better services to the investors, all SBs and DPs have been mandated to maintain a designated website, Sebi said in a circular.

Such a website would mandatorily display information such as basic details of the SB/DP such as registration number, registered address of head office and branches and names and contact details such as E-mail IDs, etc of all key managerial personnel, including compliance officers.

In addition, such a website is required to display step-by-step procedures for opening an account, filing a complaint on a designated E-mail ID, and finding out the status of the complaint and details of authorized persons.

The new framework would come into effect from August 16, the Securities and Exchange Board of India (Sebi) said. The URL to the website of an SB or DP would be reported to the stock exchanges or depositories within a week of this circular coming into effect. Any modification in the URL needs to be reported within three days of such changes.