SEBI Relaxes Reporting Norms for Stock Brokers and Demat Accounts

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  • Last Updated on 25 March, 2026

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SEBI stockbroker reporting norms

Circular No. HO/38/11/(1)2026-MIRSD-POD/I/7656/2026, Dated: 23.03.2026

The Securities and Exchange Board of India (SEBI) has introduced ease-of-doing-business measures by relaxing certain reporting requirements applicable to stockbrokers.

The changes are aimed at reducing compliance burden while ensuring effective regulatory oversight.

1. Simplified Reporting for Banks and Primary Dealers

Under the revised framework:

  • Stockbrokers that are banks or Primary Dealers (PDs) are required to report only those bank accounts that are used for stock broking activities

This eliminates the need to report unrelated accounts, thereby simplifying compliance.

2. Exemption from Demat Account Tagging

SEBI has provided relief by:

  • Exempting specified demat accounts from tagging requirements

This reduces operational complexity for brokers managing multiple demat accounts across functions.

3. Streamlined Demat Account Reporting

The requirement for reporting demat accounts has been rationalised and streamlined, with a shift in responsibility:

  • Stock exchanges and depositories will now:
    1. Ensure compliance with reporting requirements
    2. Facilitate information sharing and verification

This reduces duplication of efforts by brokers and leverages institutional infrastructure.

4. Objective of the Circular

The measures aim to:

  • Reduce compliance and reporting burden on stockbrokers
  • Improve efficiency in regulatory reporting systems
  • Enable better coordination between exchanges, depositories, and intermediaries
  • Maintain regulatory oversight while simplifying processes

Overall, the move reflects SEBI’s continued focus on balancing ease of doing business with robust compliance standards in the securities market.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied