In a major reform aimed at improving the ease of doing business, market regulator Securities and Exchange Board of India (SEBI) has approved a sweeping rationalisation and standardisation of the penalty framework imposed on stockbrokers by stock exchanges. The move aims to eliminate inconsistencies, mitigate reputational risks, and ensure the proportional enforcement of compliance norms across all market intermediaries. Announcing the decision on Friday, SEBI says the revised framework—issued by stock exchanges in consultation with the regulator on 10 October 2025—will bring uniformity and fairness in the manner penalties are levied for violations of a similar nature. Until now, brokers often faced differing penalty amounts across exchanges for identical observations and in some case

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