Capital markets regulator Sebi on Friday asked stock brokers functioning only in the Execution Only Platforms (EOP) segment to maintain a sum of Rs 10 lakh with the bourse as a base minimum capital deposit.
The EOP is a digital or online platform which allows transactions in direct plans of mutual funds without the help of distributors.
“It has been decided that the members of stock exchanges functioning only in EOP segment (Category 2 EOP) shall maintain a sum of Rs 10 lakh with the stock exchange as BMC (base minimum capital) deposit,” the regulator said in a circular.
However, for members having registration of more than one segment on the same stock exchange, the BMC deposit requirement will not be additive for such a number of segments and will be the highest applicable BMC deposit, across various segments, it added.
The new requirements will come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said.
In June, the capital market watchdog introduced a regulatory framework for ‘Execution Only Platforms’ for direct plans of mutual fund schemes in a bid to protect the investors dealing in such schemes.