Though no fresh certificate needs to be obtained for change in affiliation, such a change may require approval from the board, Sebi said in its circular. The circular also prescribed the procedure for seeking change in affiliation by the sub-brokers.

It clarified that for change in affiliation, a sub-broker will be required to submit the application to the exchange through the broker with whom affiliation is being sought. The concerned exchange, it added, will be required to forward the application to Sebi along with its recommendations.

No complaints

However, before submitting the application to the board, the exchange will have to ensure that no complaints are pending against the sub-broker seeking change in affiliation.

Thereafter, Sebi will take the change in affiliation on record and effect the changes on the sub-broker certificate.

It also clarified that pending approval of the application by SEBI, the sub-broker will be eligible to do business with the old broker.