About 230 entities are awaiting Sebi approval for operating as stock broker or trade clearing members of various stock exchanges, with some applications pending for more than a year.
Most of the long-pending applications are stuck due to additional explanations and clarifications sought by the regulator to conduct necessary due diligence on entities wanting to trade in the market, according to the Sebi data.
In some cases, explanations have been sought from the stock exchanges, whose trading or clearing memberships have been sought by the interested parties.
The pending cases include 104 applications for stock broker licence in the cash equity segment of various bourses. Besides, 131 applications are pending for operating in equity or cash derivative segments of various bourses, as per the information compiled by Sebi as on February 28.
In normal circumstances, Sebi grants registration or replies to the application within 30 days of application.
The Sebi regulations provide that a reply is sent to the applicant by and large within a period of 30 days.
However, if the applicants provide incomplete or vague information and supporting documents are not enclosed, the processing of applications get delayed.
The maximum number of 34 stock broker applications have been made for trading membership of BSE, followed by 32 for Delhi Stock Exchange, currently reviving its operations.
A total of 14 applications were pending for stock broking membership of the country's largest bourse NSE.
A few broking applications are pending for bourses like Ahmedabad, Bangalore, Bhubaneswar, Calcutta, Cochin, Ludhiana, Coimbatore, Madhya Pradesh and Madras Stock Exchanges.
Some of these applications, including those by Shri Parasram Holdings, Satyashiv Shares and Securities, Fairwealth Securities and Fast Capital Markets, were made more than a year ago between November 2009 and March 2010.
Sebi has sought additional details on due diligence process or other matters from these entities, all of whom have applied for stock broker membership of Delhi Stock Exchange.
A total of 45 applications have been filed with Sebi this year, while 59 others were filed in 2010 or before.
In addition cash market stock broker applications, about 70 applications are pending with Sebi for operating as trading or clearing member of currency derivative market.
These include a maximum of 40 applications for United Stock Exchange membership, 18 for NSE and 12 for MCX-SX.
Also, 61 applications are pending with Sebi for equity derivative market trading or clearing membership at various exchanges. The maximum of 42 equity derivative market membership applications are for BSE, 17 for NSE and two others for Madras Stock Exchange.
