The Securities and Exchange Board of India (SEBI) has notified amendments to the rules relating to depositories and partners.
SEBI has increased the total amount required for transacting members in the new rules.
According to the notification issued on Wednesday, the amended rules require stock brokers to have a net worth of Rs 3 crore within one year from the date of notification. At the same time, the total amount will be increased to Rs 5 crore within two years from the date of notification.
According to SEBI, the change in rules is aimed at mitigating the potential risks amid increased participation of investors in the securities market.
The amended regulation will be called the Securities and Exchange Board of India (Depositories and Partners) (Amendment) Regulations, 2022.