Mumbai: In a move that may hit brokers, stock market regulator Sebi is considering a revamped Direct Market Access (DMA) facility under which investors can trade directly on the exchanges without going through a stock broker.
Under the new norms, whoever wants to trade directly need not enter into a separate ‘broker-client agreement’ and it would be replaced by a simpler ‘terms and conditions’ document.
The broker, however, would have to specifically authorise clients or investment managers acting on behalf of the clients for providing DMA facility, after fulfilling Know Your Client (KYC) requirements and carrying out necessary due diligence.
The broker would have to maintain proper records of such due diligence procedures, Sebi said in a circular. Currently, the DMA facility is available only for the institutional clients.