Joint inspections by MIIs introduced

SEBI ON THURSDAY mandated a unified annual inspection for stock brokers and depository participants to be conducted jointly by all relevant market infrastructure institutions (MIIs), replacing the existing practice of separate assessments by each entity.

- NESIL STANEY

At present, annual inspections of stock brokers and depository participants are conducted separately by each of the MIIs — stock exchanges, depositories, and clearing corporations. "Such an exercise unwarrantedly taxes intermediaries due to frequent visits for inspections by different MIIs which result in disproportionate diversion of resources leading to disruption in the routine operations of the entities," said Sebi.