Description

FAQ document providing guidance on filling RBS submission form fields for trading members covering loans to associates, insurance details, brokerage income, client debit balances, collateral valuation, and regulatory actions.

Summary

BSE has issued a Frequently Asked Questions (FAQ) document to guide trading members on submitting Risk Based Supervision (RBS) information for the period April 01, 2025 to September 30, 2025. The document provides field-by-field instructions on data entry requirements, validation rules, and specific methodologies for calculating various financial metrics.

Key Points

  • Field G (Loans to Associates): If no loans given to associate/group companies, insert “0” in secured and unsecured loans fields, use “N.A./Not Applicable” for loan details
  • Field F (Insurance Details): Click Add button after entering data; records will be reflected after submission
  • Field 20 (Brokerage Income): Report gross brokerage revenue from broking operations across all exchanges
  • Field 22 (Debit Balances): Aggregate value of clear debit balances across MTF/Non-MTF balances from trial balance across all segments and exchanges, after adjusting for open bills, uncleared cheques, and margin obligations
  • Field 23 (Available Collateral): Total available collateral from debit balance clients calculated as lower of debit and total value of collateral for each client
  • Collateral Valuation: Use T day quantity with T-1 day closing price reduced by appropriate haircut not less than VAR margin rate
  • Eligible Collateral Types: Pool Account securities, 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 Details): Use “PANNOTAPPL” for entities where PAN is not applicable with mandatory reasons in specified column
  • Zero Instances: For zero instances, insert 0, press tab to navigate, then update/save data

Regulatory Changes

No new regulatory changes introduced. This is a guidance document clarifying existing RBS submission requirements.

Compliance Requirements

  • Trading members must submit RBS information covering April 01, 2025 to September 30, 2025 period
  • All loan details must be filled completely if loans are given to associates/group companies
  • Collateral valuation must follow prescribed methodology: T day quantity × (T-1 day closing price - haircut ≥ VAR margin rate)
  • Client-wise collateral aggregation required with lower of debit or collateral value for each client
  • Mandatory disclosure of fraud instances, SEBI inspections, regulatory actions, and disciplinary actions
  • PAN details required for all entities; if not applicable, use “PANNOTAPPL” with mandatory justification
  • Data across all exchanges and all segments must be consolidated
  • Brokerage income to be reported on gross basis from all broking operations

Important Dates

  • Reporting Period: April 01, 2025 - September 30, 2025
  • Collateral Valuation Date: T-1 day closing prices for T day positions
  • Delayed Payment Charges Reference: Year ended March 31, 2024 (for comparative/historical reference)

Impact Assessment

Operational Impact: Medium - Trading members need to ensure accurate data compilation across multiple parameters including collateral valuation, client balances, regulatory actions, and financial metrics. Requires coordination across multiple departments (accounts, compliance, operations).

Compliance Impact: Medium - Mandatory submission with specific calculation methodologies, particularly for collateral valuation and debit balance aggregation. Non-compliance may attract regulatory scrutiny.

Market Impact: Low - This is an internal reporting requirement and does not directly affect market operations or trading activities.

System Impact: Medium - Members need systems capable of aggregating data across exchanges, segments, and client accounts with proper adjustments for open bills, uncleared instruments, and margin obligations.

Impact Justification

Operational guidance for trading members on RBS data submission requirements for H1 FY2025-26, affecting compliance processes but not market operations directly