Description

FAQ guidance document for brokers on submitting Risk Based Supervision information to BSE for the period April 01, 2025 to September 30, 2025.

Summary

BSE has issued an FAQ document to guide stock brokers on submitting Risk Based Supervision (RBS) information for the assessment period April 01, 2025 to September 30, 2025. The document provides field-by-field instructions on how to fill various sections of the RBS submission form, including handling of loans to associate companies, insurance details, brokerage income, client debit balances, collateral valuation, and regulatory action reporting.

Key Points

  • Field G (Loans to Associates): If no loans given, insert “0” in secured/unsecured loans fields and “N.A./Not Applicable” in loan details
  • 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: Aggregate clear debit balances across MTF/Non-MTF after adjusting for open bills, uncleared cheques, and margin obligations
  • Field 23 (Collateral): Use T day quantity and T-1 day closing price reduced by appropriate haircut (minimum VAR margin rate)
  • Collateral accounts to include: Pool Account, Client Securities Margin Pledge Account, Client Securities Under Margin Funding Account, Client Unpaid Securities Pledgee Account
  • Field 24: Total delayed payment charges collected from clients during the year
  • Field 30: Number of instances of fraud
  • Field 31: Number of SEBI inspections
  • Field 32: Actions by police/foreign regulators
  • Field 35: Number of disciplinary actions against key persons
  • Field L (PAN): For entities where PAN not applicable, use “PANNOTAPPL” with mandatory reasons
  • For zero instances, insert “0” in relevant fields

Compliance Requirements

  • Stock brokers must submit RBS information for the period April 01, 2025 - September 30, 2025
  • All mandatory fields must be filled with accurate data
  • When loans are given to associates/group companies, complete loan details must be provided
  • Collateral valuation must follow specified methodology using T day quantity and T-1 closing price with appropriate haircuts
  • PAN must be provided for all entities; if not applicable, “PANNOTAPPL” with justification is required
  • Brokers must report all regulatory actions, frauds, SEBI inspections, and disciplinary actions accurately
  • Data must cover operations across all exchanges where the broker operates

Important Dates

  • Assessment Period: April 01, 2025 - September 30, 2025
  • Submission deadline: Not specified in the FAQ document

Impact Assessment

This FAQ document provides operational guidance to brokers for RBS compliance, reducing ambiguity in data submission. Proper compliance with RBS requirements enables BSE to conduct effective risk-based supervision of brokers. Accurate reporting of client debit balances, collateral, and regulatory actions is critical for maintaining market integrity and identifying high-risk brokers requiring enhanced supervision. Non-compliance or inaccurate reporting could result in regulatory action.

Impact Justification

FAQ document providing clarifications on RBS data submission requirements for brokers; important for compliance but procedural in nature