New Delhi, Oct. 10 -- The Securities and Exchange Board of India (Sebi), in consultation with the country's stock exchanges, has rolled out a rationalized penalty framework for stock brokers. The move, announced on Friday, aims to standardize penalties, reduce duplication, and shift from a punitive to a more corrective stance. The new regime also promises to bring uniformity and fairness to the compliance landscape.

While the intent is sound, legal experts believe the move's success will hinge on careful implementation and vigil to ensure discipline isn't inadvertently diluted.

The previous framework was beset with inconsistencies that sowed confusion and frustration. As Sonam Chandwani, managing partner at KS Legal, noted, "The move to...