Description

Standard Operating Procedure for trading members to submit review, appeal or waiver requests for penalties imposed by the Member Committee, effective September 19, 2025.

Summary

BSE has issued a Standard Operating Procedure (SOP) for trading members to file review, appeal or waiver requests against penalties and actions taken by the Exchange or Member Committee. This follows SEBI circular SEBI/HO/MRD/POD-III/CIR/P/2025/112 dated August 5, 2025. The procedure establishes a two-tier review mechanism with specific timelines and processing fees.

Key Points

  • Trading members can appeal actions taken by the Exchange before the Member Committee
  • Actions decided by Member Committee can be appealed before a Review Committee comprising Public Interest Directors and Independent External Persons
  • Appeals must be filed within 45 days of receiving the aggrieved decision, with possible 15-day extension for valid reasons
  • Non-refundable processing fee of ₹10,000 plus applicable taxes required
  • Applications must be submitted to designated email xyz@bseindia.com or through portal
  • No appeals entertained after 60 days from receipt of decision
  • Incomplete applications without payment proof or requisite documents will be closed

Regulatory Changes

  • New two-tier appeal mechanism introduced:
    • First Forum: Member Committee (for Exchange actions) or Review Committee (for Member Committee decisions)
    • Second Forum: Courts/Tribunals as per applicable laws
  • Review Committee composition: Public Interest Directors (excluding MC members) and/or Independent External Persons
  • Processing fees jointly decided by stock exchanges and subject to periodic revision
  • No processing fees for suo-motu reviews initiated by Exchange

Compliance Requirements

  • Submission: File written request to xyz@bseindia.com or through portal with all supporting documents
  • Timeline: Within 45 days of receiving aggrieved decision (extensible by 15 days with valid reasons)
  • Payment: Pay non-refundable processing fee of ₹10,000 + applicable taxes and provide proof
  • Documentation: Submit complete application with all requisite documents and information
  • Completeness: Exchange will verify completeness before forwarding to concerned authority
  • Absolute Deadline: No appeals accepted after 60 days from receipt of decision

Important Dates

  • September 19, 2025: Review Committee mechanism effective date
  • August 5, 2025: Reference SEBI circular date (SEBI/HO/MRD/POD-III/CIR/P/2025/112)
  • August 8, 2025: Prior Exchange Notice No. 20250808-26 date
  • Filing Deadline: 45 days from receipt of aggrieved decision (primary)
  • Extended Deadline: Additional 15 days with sufficient reasons (maximum 60 days total)

Impact Assessment

Operational Impact: Establishes clear procedural framework for trading members to contest regulatory actions, providing structured grievance redressal mechanism. The two-tier system ensures independent review of Member Committee decisions.

Member Impact: Provides trading members with formal avenue to challenge penalties and actions with defined timelines and reasonable processing fees. The 45+15 day window balances timely resolution with member rights.

Transparency Impact: Standardizes appeal process with clear documentation requirements, designated communication channels, and defined authority levels, enhancing regulatory transparency and accountability.

Impact Justification

Procedural circular establishing grievance mechanism for trading members to contest penalties; does not affect market operations but important for member rights