SEBI has directed all stock brokers to inform a standard Most Important Terms and Conditions (MITC) to all clients. SEBI has prescribed the following uniform documents for formalizing the broker-client relationship, as per “Master Circular on stock brokers” dated May 17, 2023:
- Account opening form
- Rights and obligations
- Risk disclosure documents
- Guidance note
- Policies and procedures
- Tariff sheet
A copy of these documents is required to be provided by the broker to the clients free of charge.
In order to bring into focus the critical aspects of the broker-client relationship and for ease of understanding of the clients, it has been decided that brokers shall inform a standard Most Important Terms and Conditions (MITC)which shall be acknowledged by the client.
The form, nature of communication, documentation and detailed standards for implementation of MITC shall be published on or before January 01, 2024, by the Brokers’ Industry Standards Forum(ISF), under the aegis of stock exchanges, in consultation with SEBI. In the event that the ISF is unable to publish the same, as above, in whole or in part, then SEBI, may, at its discretion, publish standards in respect of the same.
