The Securities and Exchange Board of India (SEBI) has introduced a significant proposal to revise the capital requirements for stock brokers, aiming to better reflect their operational scale and the risks they manage. The current system, which linked broker net worth to client funds held, is deemed outdated as most client money is now transferred directly to clearing corporations. Under the new framework, broker net worth will be determined by three key factors: 10% of the average client balance over the last six months, the number of active clients, and additional requirements for clients introduced through authorised agents. For brokers with direct clients, maintaining a capital of ₹50 lakh (approximately $60,000 USD) is required for those managing between 10,000 and 50,000 active accounts, with the amount increasing as the client base expands. For clients brought in through agents, the requirement starts at ₹5 lakh (approximately $6,000 USD) and rises based on scale. SEBI emphasizes that these new capital requirements will serve as a safety cushion, enhancing the overall stability of the market as trading activity continues to grow.