DEA Revises Rule 8 of the Securities Contracts (Regulation) Rules, 1957 to Improve Regulatory Clarity

The Department of Economic Affairs (DEA), Ministry of Finance, has brought a change in Rule 8 of the Securities Contracts (Regulation) Rules (SCRR), 1957. This change was officially announced through Gazette Notification G.S.R. 318(E).

The aim of revising this rule is to make rules clearer and easier to follow for brokers, which will help improve the ease of operating business.

The change has been made after considering the feedback from the stakeholders and is a part of the Government’s effort to offer regulatory clarity and improve the ease of doing business in the financial sector.

The DEA issued a Consultation Paper inviting suggestions from the stakeholders in September 2024, as many stakeholders had expressed issues about the provisions of Rule 8. The amendment will allow the market intermediaries to support to the growth of India’s capital markets.

According to the growing size and interconnectivity of the financial sector, and the changing nature of brokers, the DEA felt it was time to review the regulations to ensure the rules continue to serve their function without causing issues for stakeholders.