The National Stock Exchange Members' Association has asked the Securities and Exchange Board of India to address the difficulties faced by brokers in obtaining a unique identification number as required under the Sebi (Central Database of Market Participants) Regulations, 2003.

The association, which met Sebi officials in Mumbai recently, said as the cost of a single UIN is Rs 300, obtaining UINs for all employees of a stock broking firm was turning out to be a costly proposition.

Further, it has cited difficulties in filling the application form for UINs as required by the National Securities and Depository Ltd, and also raised secrecy concerns in parting with vital organisational information to NSDL-appointed points of service.

The representation by NSEMA follows an interim order issued by the Delhi High Court on March 18 directing the association's representatives to meet Sebi's executive director on the difficulties encountered by brokers in implementing the regulator's orders.

Sebi had on January 1 this year passed the regulation, which requires all brokers and market intermediaries to obtain an UIN before March 31.

The interim order of the Delhi High Court, however, granted temporary relief to brokers by exempting them from obtaining UINs for their relatives, who are not connected with the securities market.

While Solicitor-General Kirit Rawal, who appeared for Sebi, submitted before the court that the regulations were valid and justified and did not call for any amendments, he also expressed Sebi's willingness to consider suggestions for improvements made by NSEMA.

According to sources, NSEMA has asked Sebi to limit the number of employees required to obtain UINs to those directly involved with the company's operations. It further told Sebi that relatives who were not connected with the business should not be required to obtain an UIN.

The association also said the requirement of providing thumb and index finger impressions of both hands was uncalled for. NSEMA also expressed concern over the confidentiality of the data brokers were sharing with NSDL-appointed points of service.

"There is a risk of sensitive information being misused," a source said, adding that certain big brokerage houses were trying to poach talent from smaller firms.

The sources said while Sebi had not given a time frame for modifying the regulations, it was expected that the regulator would do so at the earliest to avoid confusion among market participants.