Sebi eases broker entry in Gujarat's GIFT City

MUMBAI: India's markets regulator, Sebi, has proposed changes to make it easier for stock brokers to operate in GIFT City, Gujarat. On Friday, Sebi announced that brokers opening a subsidiary or a joint venture there will not need prior approval from the regulator. Additionally, stock brokers may conduct their activities through a separate business unit of their existing domestic broking entity. This would allow them to manage operations more effectively and could significantly boost the market for domestic brokers, according to industry experts. Sebi also updated its rules concerning fund house employees. Currently, these employees must receive at least 20% of their compensation in the form of units from the funds they manage. However, starting April 1, this requirement will be adjusted based on salary levels. Employees will be able to earn between 10% and 22.5% of their pay in units, depending on their roles. Those earning less than Rs 25 lakh will not be affected by this rule.