SEBI eases glitch rules for most brokers

Business Jan 09, 2026

SEBI just made life a bit easier for stock brokers by updating its rules on trading system glitches.
Now, only bigger brokers—those with over 10,000 clients—need to follow the stricter guidelines.
That means about 60% of smaller brokers are off the hook, making things less stressful for them.

What else changed?

SEBI's new rules focus only on major glitches that actually impact trading—not minor hiccups or issues outside a broker's control.
Brokers now get two hours (instead of one) to report problems to exchanges and clients, with a quick summary due by the next trading day and a full analysis within two weeks.
Penalties and tech requirements will also match broker size, aiming to keep things fair and efficient across the board.