Sebi proposes to allow direct market access route to all investors
Mumbai, Jun 23, 2026
Market regulator proposes expanding direct market access beyond institutional investors and allowing exchanges to specify eligible investor categories for ETCDs
The Securities and Exchange Board of India (Sebi) has proposed allowing direct market access (DMA) for all investors — a mechanism currently open only to institutional investors. It allows buying and selling securities without relying on a broker.
In a consultation paper floated on Monday, Sebi noted that with technological advancement, benefits arising out of DMA may be passed on to other categories of clients — subject to risk management checks applicable for respective categories.
“It is understood that exchanges have the flexibility to extend DMA facility to other client categories, however, as suggested by MIIs (Market Infrastructure Institutions), for further clarity, the line ‘Currently this facility is available for institutional clients’ is proposed to be removed,” Sebi noted.
In May 2023, the market regulator allowed DMA to the registered foreign portfolio investors (FPIs) for participating in exchange traded commodity derivatives (ETCDs). It has now proposed extending DMA for ETCDs to other investor categories.
The regulator noted that the proposal follows requests from MIIs to harmonise the provisions of DMA for the commodity derivatives segment.
“It has been proposed for exchanges to specify from time to time the categories of investors to whom the DMA facility can be extended for ETCDs, as is the present requirement for other segments,” it added.
In the NSE cash market segment, DMA gained traction with its share rising by 91 bps month-on-month to 4.7 per cent, marking a nine-month high in May. This coincided with an increase in foreign investor participation.
Other trading channels saw marginal changes, with colocation accounting for 43.4 per cent of activity and mobile trading reaching a five-year high of 22.9 per cent in FY27 up to May 2026.
[The Business Standard]
