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Sebi's whole-time member K C Varshney on Monday said the word "penalty" has a lot of stigma attached to it and the capital markets regulator is mulling dropping the reference when it comes to acting against errant brokers.

The regulator is also in the process of rationalizing the penalties, Varshney said while speaking at an event to launch the proxy advisory recommendations feature on e-voting system in investor apps.

"You know many of these are not actually penalty. And unnecessarily it is a stigma on the broker when it is imposed. So can we have a better name?" Varshney said.

He said the industries standard forum (ISF) has deliberated hard on the issues surrounding the broking industry over the last five months with an intent to usher in ease of doing business measures.

Varshney said a consensus to some of the contested issues was found last Saturday during a meeting in New Delhi between brokers, NSE and Sebi officials, and added that an announcement is likely very soon.

"Each one of us is satisfied that now we can move forward and at least first phase of this rationalisation should happen very soon," he said.

Apart from the change in nomenclature of penalties and the rationalization in them, Sebi is also looking at making one exchange as the nodal authority for imposing the penalties, he said.

There is also a move to introduce a system where brokers share their data to a single portal rather than multiple ones, the WTM said, adding that a similar portal where brokers can apply for some clearances after registration is also being looked into.

The regulator is also in discussion with the Finance Ministry on other aspects of the ease of doing business for the broking industry, he said.

Varshney welcomed the launch of the new facility being launched on both CDSL and NSDL, saying investors can now choose to read every opinion of proxy advisory firms and vote accordingly.

This is a huge step forward for corporate governance, he added.

Varshney said Sebi Chairman Tuhin Kanta Pandey, who took over in March this year, had advised the staff to ensure that there is optimum regulation.

Measures on ease of doing business have to go alongside enforcement and there has to be a fine balance between the two, he said.