Stocks of capital market companies up today after SEBI proposes to ease regulations
By Ankur Chandra | Updated at: Aug 13, 2025 01:50 PM IST
Stocks of some major stock broking and capital market companies are up today, quite sharply. This after SEBI floated a consultation paper. The stated aim of this paper is to make things easier for stock brokers and to reduce their compliance costs.
Clearer definition of Proprietary trading
One measure proposed in the paper is a clearer definition of proprietary trading. Proprietary trading is trading done by stock brokers with their own money and not the client’s money. There are areas of ambiguity in the existing definition. This ambiguity resulted in actions against some stock brokers in the past.
Proposal to include definition of algorithmic trading
The definition of algorithmic trading has also been included in the draft paper. One of the stated aims of the consultation paper is to harmonize the regulations with Companies Act, 2013. The paper also proposes to allow stock brokers to operate in GIFT-IFSC city under a separate operating company.
There is also the proposal to allow stock brokers access to Negotiated Dealing System – Order matching (NDS-OM). NDS-OM is an electronic order matching system that is operated by Reserve Bank of India. It is used for trading in government securities. Currently only primary dealers and banks are allowed on this system.
The broking industry got a blow from tighter SEBI regulations regarding futures & options, that were imposed last year.
At 12:45 p.m. 13th August, 2025, Angel One’s stock is up by 3.60%, trading at Rs 2,597. IIFL Capital’s stock price is up by 4.73%, trading at Rs 318.05. Motilal Oswal Financial Services’ stock is up by 2.06% at Rs 930.10. Nifty Capital Markets Index, that is made up of major companies that operate in the capital markets, is up by 1.95% at this time. The broader Nifty 50 index is up by 0.55% at this time.
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