Sebi's New Proposal for GIFT City Brokers

In a significant move to boost the securities market in GIFT City, Gujarat, the Securities and Exchange Board of India (Sebi) has proposed that stock brokers can now open subsidiaries or joint ventures without needing a regulatory nod. This initiative aims to simplify the process for domestic brokers to operate in GIFT City, leveraging their existing infrastructure through a separate business unit (SBU) on an arm's-length basis.

Relaxation in Mutual Funds' Compensation Rules

Sebi also announced changes to the compensation structure for employees of fund houses. Effective April 1, the 'skin-in-the-game' rule will be slab-based, with the percentage of remuneration paid through units of schemes they manage varying between 10% and 22.5%, depending on the role and salary structure. Employees earning less than Rs 25 lakh as cost-to-company will be exempt from this rule.

These proposals are expected to significantly ease the operational challenges for brokers and fund houses, making GIFT City a more attractive destination for securities market activities.