Description

FAQ document providing guidance on filling out the Risk Based Supervision submission form for stock brokers, covering loan details, insurance details, brokerage income, client balances, and disciplinary actions.

Summary

BSE has issued a Frequently Asked Questions (FAQ) document to assist stock brokers in filling out the Risk Based Supervision (RBS) submission form for the period April 01, 2025 to September 30, 2025. The FAQ provides detailed instructions on completing various fields including loans to associate/group companies, insurance details, brokerage income, client debit balances, collateral valuation, delayed payment charges, fraud instances, SEBI inspections, and disciplinary actions.

Key Points

  • Field G (Loans to Associates): If no loans given to associate/group companies, insert “0” in secured and unsecured loans, insert “N.A./Not Applicable” in loan details, then click add button
  • Field F (Insurance Details): Click add button after entering data to save records
  • Field 20 (Brokerage Income): Consider gross brokerage revenue from broking operations across all exchanges
  • Field 22 (Client Debit Balances): Report aggregate value of clear debit balances across MTF/Non-MTF balances after adjusting for open bills, uncleared cheques, and margin obligations
  • Field 23 (Collateral Valuation): Use T day quantity and T-1 day closing price reduced by appropriate haircut (not less than VAR margin rate). Consider collateral in Pool Account and pledged accounts (Client Securities Margin Pledge Account, Client Securities Under Margin Funding Account, Client Unpaid Securities Pledgee Account)
  • Field 24 (Delayed Payment Charges): Report total late/delayed payment charges collected from clients during year ended March 31, 2024 across all exchanges
  • Field L (PAN Details): Entities where PAN is not applicable should use “PANNOTAPPL” with mandatory reasons specified
  • For zero instances (fraud, SEBI inspections, disciplinary actions), insert “0” and save data

Regulatory Changes

No regulatory changes introduced. This is a guidance document explaining how to fill existing RBS submission requirements.

Compliance Requirements

  • Stock brokers must submit RBS information for the period April 01, 2025 - September 30, 2025
  • All loan details must be filled if loans have been given to associate/group companies
  • Client-wise collateral should be valued as lower of debit and total value of collateral for that client
  • Collateral haircut must be at rate not less than VAR margin rate of the security
  • Mandatory specification of reasons required when PAN is marked as “PANNOTAPPL”
  • All fields including fraud instances, SEBI inspections, police/foreign regulator actions, and disciplinary actions against key persons must be accurately reported

Important Dates

  • Reporting Period: April 01, 2025 - September 30, 2025
  • Reference period for delayed payment charges: Year ended March 31, 2024
  • Collateral valuation: T day for quantity, T-1 day closing price

Impact Assessment

This FAQ document provides operational guidance to stock brokers for completing their mandatory RBS submissions. It standardizes reporting methodology particularly for complex fields like collateral valuation and client balances. Proper compliance ensures accurate risk assessment of brokers by BSE. The clarifications on handling zero instances, PAN exceptions, and collateral calculation methodology will improve data quality and consistency across broker submissions. No direct market impact as this is an internal compliance process for brokers.

Impact Justification

FAQ guidance for routine Risk Based Supervision reporting by stock brokers for April-September 2025 period. Important for broker compliance but does not change market operations or affect investors directly.