New Delhi : To strengthen the supervision of stock brokers, markets regulator Sebi is mulling additional measures to prevent misuse of client’s securities. Besides, the regulator plans to initiate technology-based measures to streamline the sharing of information among the stock exchanges, depositories and Sebi to enhance the inspection of intermediaries.

The move comes amid several instances have been reported about misuse of clients’ securities by stock brokers. “To strengthen the supervision of stock brokers, additional measures to prevent misuse of client’s securities are under consideration,” the Securities and Exchange Board of India (Sebi) said in its annual report for 2017-18, reports PTI.

Last year has also seen cases of shell accounts being used to carry out fraudulent or non-genuine trades.             “It is also proposed to introduce legal provisions that strengthen the mandate to the broker under anti-money laundering provisions to carry out necessary surveillance of client trading activity,” the regulator noted.

With a view to further strengthen its legal framework, Sebi said it will be reviewing the regulation pertaining to settlement.