New Delhi: With a vast majority of stock market trading taking place in futures and options segment, at least 33 entities have sought Sebi's approval to operate as brokers on equity derivative platform of various exchanges.
According to details available with the capital market regulator Securities and Exchange Board of India (Sebi), 68 applications for registration as brokers in different segments were pending as on July 31, which included 33 for equity derivatives segment.
Besides, six applications were for currency derivative market and 29 others for cash segment of equity markets.
A large number of stock brokers operating in the cash segment have been forced to shut shop due to falling retail trade volumes and most of the equity trades are taking place in derivatives market these days.
Latest data shows that the total number of stock brokers in the cash segment has fallen below the 10,000 mark for the first time in about four years.
Among the 68 pending applications from brokers, Sebi has sought clarification in 50 cases and is awaiting their reply, while other 17 pleas were "under process", as on July 31.
Among those seeking Sebi registration for operating as a broker, 24 entities have requested authorisation to function on the country's newest stock exchange MCX-SX. These included 12 for cash segment and the remainder for derivative platform.
Besides, nine entities each have sought Sebi registration to function on the NSE and BSE platforms.
Sebi recently decided to simplify the procedural requirements for brokers by launching common registration certificates across different market segments.
Currently, a broker is required to get separate certificates of registration for operating in different segments of a stock exchange.
Separate registrations are also needed for each category like trading member, trading cum self clearing member and a professional clearing member.
First Published: Sunday, August 18, 2013, 15:34