Bro­kers seek bet­ter sta­tus

Financial Chronicle - - COMPANIES - FC BUREAU

BROKING body Anmi is seek­ing recog­ni­tion as the first-level reg­u­la­tor for in­vestors and a greater say in pol­icy-mak­ing for the broking in­dus­try.

Anmi urged gov­ern­ment to en­gage in healthy dis­cus­sions with the broking in­dus­try on im­por­tant pol­icy de­ci­sions and tax frame­work.

As­so­ci­a­tion of Na­tional Ex­changes Mem­bers of In­dia (Anmi), the lead­ing pan-In­dia body of around 900 stock bro­kers, urged the gov­ern­ment to al­low it the sta­tus of a Self-Reg­u­la­tory Or­gan­i­sa­tion (SRO).

Ra­jesh Ba­heti (in pic), pres­i­dent, Anmi, pointed out that “cur­rently brokerages and in­ter­me­di­aries are not even given the sta­tus of in­dus­tries and con­sid­ered a re­spon­si­ble source of ad­vice or pol­icy feed­back”, though they have played a big role in bring­ing about many struc­tural changes in the mar­ket.

“The broking in­dus­try plays a piv­otal role in In­dia’s progress and it’s high time that the in­dus­try should be given its due recog­ni­tion by a say in pol­i­cy­mak­ing and the role of a first-level reg­u­la­tor for the in­dus­try. Pro­vid­ing an SRO sta­tus to the in­dus­try will lead to en­hanced su­per­vi­sion, fair con­duct, eth­i­cal prac­tices and in­vestor pro­tec­tion. This, to­gether with the pol­icy re­forms, would pro­vide fur­ther im­pe­tus for growth for our cap­i­tal mar­kets,” Ba­heti added.

Naresh Te­jwani, con­vener of the ANMI Con­ven­tion, said, “With evolv­ing times, dis­rup­tive tech­nolo­gies are bound to trig­ger dis­rup­tive growth in the cap­i­tal mar­ket in­dus­try as well.

The Anmi con­ven­tion brings to­gether all stake­hold­ers of this in­dus­try un­der a sin­gle roof to iden­tify the early in­di­ca­tors of the dis­rup­tions and be bet­ter pre­pared for the fu­ture growth by lev­er­ag­ing this era of dis­rup­tion.”

“More­over, though all trans­ac­tions in the in­dus­try are trans­par­ent, but the in­dus­try still is bur­dened with mul­ti­ple taxes and levies. We, there­fore, re­quire and re­quest that the gov­ern­ment should en­gage with us to evolve a stable tax frame­work for the cap­i­tal mar­kets as part of the Di­rect Tax Code that is in the mak­ing,” he said.

The cap­i­tal mar­ket in­ter­me­di­aries, in­clud­ing the broking com­mu­nity has played a mas­sive part in this trans­for­ma­tion, be it dis­tri­bu­tion of third- party prod­ucts, or fa­cil­i­tat­ing di­rect in­vest­ments into our stock mar­kets, Ba­heti said.

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