Traders hope the ease of doing business will improve drastically with the new uniform guidelines for membership structure in equity derivatives and cash segments, a report says.
The norms that trading regulator Securities and Exchange Board of India (Sebi) has framed will become applicable from April 1 to a trading member, self-clearing member, clearing member and professional clearing member.
"Unification of membership structure across equity cash and derivatives segments of stock exchanges is vital to improving ease of doing business," the Sebi circular says.
A stockbroker in the cash segment who is already registered as a self-clearing member or a clearing member in the derivatives segment would "automatically" have the same status in the cash segment from April 1, it said.
On the other hand, the professional clearing members would be treated the same in both the segments.
Stockbrokers in the cash segment now act as both trading as well as self-clearing members, but in the derivatives segment they act as separate entities, the report said.
Stockbrokers, not yet registered as a self-clearing member or clearing member, in the derivatives segment, can discharge the same work in the cash segment subject to certain conditions.
Such entities would have to comply with net-worth requirements on or before September 30, according to the circular.
The entities failing to meet the requirement would continue as a trading member in cash segment subject to conditions. They would have to tie up with a clearing member or professional clearing member on or before September 30 to clear and settle their trades.
"The existing PCMs (professional clearing members) in derivatives segment shall become PCMs in cash segment with effect from April 1.
"However, the existing Custodian Clearing Member in the cash segment shall continue to act as Custodian Clearing Member in cash segment only," Sebi says.
The Sebi board decided In June last year to discard the category of sub-brokers as market intermediaries taking into account the growth of online platforms that made their role redundant to a large extent.