Description

BSE releases FAQ document providing guidance on filling RBS submission form for trading members covering loan details, insurance details, brokerage income, client debit balances, collateral valuation, and disciplinary actions.

Summary

BSE has issued a Frequently Asked Questions (FAQ) document to assist trading members in completing the Risk Based Supervision (RBS) information submission for the period April 01, 2025 to September 30, 2025. The FAQ provides detailed field-by-field guidance on reporting requirements including loans to associate/group companies, insurance details, brokerage income, client debit balances, collateral valuation, delayed payment charges, regulatory inspections, and disciplinary actions.

Key Points

  • FAQ document provides guidance on completing RBS submission form for April-September 2025 period
  • Field G: For cases with no loans to associate/group companies, insert “0” in secured and unsecured loans fields and “N.A./Not Applicable” in loan details
  • Field F: Insurance details must be added using the Add button after entering data
  • Field 20: Brokerage Income should reflect gross brokerage revenue from broking operations across all exchanges
  • Field 22: Report aggregate value of clear debit balances across MTF/Non-MTF balances after adjusting for open bills, uncleared cheques, and margin obligations
  • Field 23: Total available collateral calculated as lower of client debit and total collateral value for each client
  • Collateral valuation: T day quantity with T-1 day closing price reduced by appropriate haircut (not less than VAR margin rate)
  • Field 24: Total delayed payment charges collected from clients during year ended March 31, 2024 across all exchanges
  • Field 30: Number of instances refers to number of fraud instances
  • Field 31: Number of SEBI inspections during the period
  • Field 32: Actions by Police/Foreign Regulator to be reported
  • Field 35: Number of instances of disciplinary action against key persons
  • Field L: Entities without PAN should use “PANNOTAPPL” with mandatory reasons for non-applicability
  • For zero instances, enter “0” and proceed with tab navigation to save data

Regulatory Changes

No new regulatory changes introduced. This is an FAQ document providing technical guidance on existing RBS reporting requirements.

Compliance Requirements

  • Trading members must complete RBS information submission for April 01, 2025 to September 30, 2025 period
  • All loan details are mandatory when loans have been given to associate/group companies
  • Collateral must be valued using T day quantity and T-1 day closing price with appropriate haircut
  • Collateral should only include securities in Pool Account pledged to Trading Member (Client Securities Margin Pledge Account, Client Securities Under Margin Funding Account, Client Unpaid Securities Pledgee Account)
  • Members must specify reasons when PAN is not applicable for any entity
  • All fields must be accurately completed following the FAQ guidance
  • Even zero instances of fraud, inspections, or disciplinary actions must be explicitly reported

Important Dates

  • Reporting Period: April 01, 2025 to September 30, 2025
  • Reference Period for Delayed Payment Charges (Field 24): Year ended March 31, 2024

Impact Assessment

Impact on Trading Members: Medium impact as members must ensure accurate completion of detailed RBS submission covering multiple operational and financial parameters. The FAQ provides necessary clarifications to avoid errors and potential compliance issues.

Operational Requirements: Members need to gather comprehensive data across exchanges including brokerage income, client debit balances, collateral details, regulatory inspections, and disciplinary actions. Proper understanding of collateral valuation methodology and adjustments for client balances is critical.

Risk Management: RBS framework enables BSE to assess member risk profiles systematically. Accurate reporting helps in early identification of potential issues and appropriate supervisory interventions.

Data Collection Complexity: Members must consolidate information across multiple segments and exchanges, requiring robust internal systems and processes for accurate data aggregation.

Impact Justification

Operational compliance requirement for trading members with specific reporting obligations. FAQ document provides technical guidance on filling mandatory RBS submission forms for H1 FY2025-26 period.