Stock market participants would no longer need to give the Australian Securities and Investments Commission (ASIC) details of their professional indemnity (PI) insurance, under new proposals to cut red tape.

However, they would still have to hold the cover.

ASIC has begun a consultation process on reducing the regulatory burden for about 86 participants in securities markets, including the Australian Securities Exchange, Chi-X and the National Stock Exchange.

It suggests dropping the requirement to report the amount and period of PI cover. Businesses would still need to notify the regulator of claims, potential or threatened claims or circumstances that might give rise to claims.

Market participants can be fined up to $100,000 for failing to hold adequate PI cover, and ASIC can require them to prove they hold cover – a power it wants to retain.

The consultation is open until October 2. The new rules are likely to take effect between October and December.