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.
Under the rule, an entity desirous of providing execution-only services in direct plans of mutual funds can obtain registration under either of the two categories — category 1 EOP as an agent of asset management companies registered with industry body Association of Mutual Funds in India (AMFI) or category 2 EOP as an agent of investor, registered as a stock broker.
“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
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