"Sub-broker" means any person who is registered with SEBI under the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 (SEBI Regulations) as a Sub-broker
Members desirous of appointing Sub-broker in Capital Market segment of the Exchange are advised to take recognition of the Exchange for such appointments. In terms of SEBI Regulations, all Sub-Brokers are required to obtain a Certificate of Registration from SEBI for acting as a sub-broker.
Members can appoint a person / entity as a Sub-broker provided such person / entity meets all the criteria as specified in Securities & Exchange Board of India (Stock-Broker and Sub-Broker) Regulations, 1992 and as per Regulations of the Exchange.
For appointment of Sub-Broker, the member has to submit application form as per format of the Exchange along with relevant processing fees. The application form will be scrutinized by Exchange and if found to be in order, the applicant will be granted recognition by the Exchange as sub-broker of the relevant member and then the application will be forwarded to SEBI for registration of Sub-Broker. On approval by SEBI the Exchange will inform the same to the member. Members shall permit the applicant to commence its activities as a sub-broker only after receipt of certificate of registration from SEBI.
Members are required to ensure that the Sub-broker appointed by them comply with the applicable requirements on an ongoing basis. Further they shall be solely responsible and liable for all the actions of the Sub-brokers appointed by them. In case of any change in the sharing pattern/shareholding pattern of the Sub-broker, the details of such change shall be reported by the Trading Member to the Exchange.