Write short notes on the following: (c) Qualified stock broker

Qualified Stock Broker (QSB): A Qualified Stock Broker (QSB) is a stock broker designated by SEBI under Regulation 18D of the SEBI (Stock Brokers) Regulations, 1992. SEBI designates QSBs based on their size, scale of operations, potential impact on investors and the securities market, and their governance and service standards. Parameters for Designation: SEBI considers the following parameters with appropriate weightages: Total number of active clients. Available total assets of clients with the stock broker. Trading volumes of the stock broker. End-of-day margin obligations of all clients. Compliance score specified by the Board. Grievance redressal score specified by the Board. Proprietary trading volumes of the stock broker. Enhanced Obligations of QSBs: Stock brokers designated as QSBs are required to meet enhanced obligations and discharge responsibilities to ensure: Appropriate governance structure and processes. Robust risk management policy and processes. Scalable infrastructure and appropriate technical capacity. Framework for orderly winding down. Robust cyber security framework and processes. Investor services, including online complaint redressal mechanism. The designation of QSBs aims to mitigate systemic risks, as the failure of large brokers could have widespread impact. QSBs are subject to enhanced monitoring by SEBI and Market Infrastructure Institutions (MIIs).