Sebi cuts internet-based trading approval time to 7 days

New Delhi: Markets regulator Sebi on Thursday significantly reduced the time taken by stock exchanges for granting approval to stockbrokers for internet-based trading to seven days from the current 30 days.The move is aimed at facilitating ease of doing business. Under the rule, the broker is required to apply to the respective stock exchange for a formal permission to provide internet-based trading service.

Further, the stock exchange, which was required to communicate its decision to the member within 30 calendar days, will now have to do so within 7 days, the Securities and Exchange Board of India (Sebi) said in its circular. The internet trading can take place through order routing systems, which will route client orders to exchange trading systems for execution. Thus a client sitting in any part of the country can trade using the internet as a medium through brokers’ internet trading systems.