The runners have been renting terminals to professional merchants for a monthly rate or commission, which allows them to avoid the payment of the client. | Photo credit: Hemanshi Kamani
The Bag Board and Exchange of India (Sebi) can soon implement new rules to stop the misuse of owner commercial terminals, in the middle of Conerns that some runners are renting a issue to merchants to avoid margin requirements, according to sources.
The Brokers Industry Standards Forum (ISF) has finished and clear the rules after broad discussions with industry and interested parties. The regulator is in the process of writing the proposals and is expected to come out soon with a consultation document, the sources said.
A owner corridor is used by an investment corridor or trade, with margins adjusted against funds already deposited with the stock exchanges, instead of requiring an initial margin payment. While it is intended to handle the internal risk, this installation has misuse by some runners to sacrifice the “tips rental” services.
To plug the lagoon, each owner commercial terminal will have the mandate to register with the exchanges in a single direction of access control to 12 digit media and a static internet protocol address (IP). These identifiers assigned to the computer network and the Internet provider will help specify the exact physical location of each commercial work station, said a source of exchange.
Any deviation, such as moving the terminal to an unregistered location, will automatically activate a surveillance consultation. If the MAC or IP address of a terminal changes without a previous approach, the exchanges will launch investigations to determine if the change reflects unauthorized rentals or other violations, the source said.
An email sent to Sebi in search of comments did not cause an answer.
Rental schemes
The runners have been renting terminals to professional merchants for a monthly rate or commission, which allows them to ignore the payment of the client, since the thesis operations use the funds of the corridor deposited with the exchanges such as Net-Vorth requirements.
In such cases, the client’s trade, classified as a “patented trade” by the corridor instead of a “client trade” to pocket the initial margin that would otherwise have collected. This allows customers to avoid paying indirect taxes, margin costs and also taking higher exhibitions than allowed by regulations.
“There are many cases that Coppsting terminals are interested and support trades are resolved separately with runners, so the client is not in which they are not done?
Sebi has noticed many of these cases and is not happy with the election, since this places the repair of investors out of reach of the market regulator. “If something goes wrong, the investor won the right documentation to corroborate a complaint or any repair,” said the source.
There are bone of several cases of copy terminals located beer, far from the location recorded with exchanges, especially since Sebi pressed the margin rules. At the same time, the Income Tax Department has been sending notices to several corridors for explanations about large transactions in the accessory books of the runners of such unauthorized operations.
Posted on May 18, 2025
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