Description
Standard Operating Procedure for trading members to submit requests for review, appeal or waiver of penalties arising from Member Committee actions, 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. The SOP, effective September 19, 2025, implements SEBI circular SEBI/HO/MRD/POD-III/CIR/P/2025/112 dated August 5, 2025. It establishes a two-tier review mechanism with specified 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 (PIDs) and Independent External Persons (IEPs)
- Appeals must be filed within 45 days of receiving the aggrieved decision
- Additional 15 days allowed with sufficient reasons for delay
- Non-refundable processing fee of ₹10,000 plus applicable taxes required
- Applications submitted after 60 days will not be entertained
- Designated email id: xyz@bseindia.com for submissions
- Review Committee becomes operational from September 19, 2025
Regulatory Changes
Appeal Hierarchy Established:
- First Forum: Member Committee (for Exchange actions) or Review Committee (for Member Committee decisions)
- Second Forum: Courts/Tribunals as per applicable laws
New Review Committee:
- Comprises Public Interest Directors (excluding those on Member Committee) and Independent External Persons
- Set up by the Governing Board
- Handles appeals against Member Committee decisions involving exercise of discretion
Compliance Requirements
For Trading Members Filing Appeals:
Submission Requirements:
- Written request on designated email xyz@bseindia.com or through portal
- All supporting documents must accompany the request
- Proof of processing fee payment
Timeline Compliance:
- Primary deadline: 45 days from receipt of aggrieved decision
- Extended deadline: Additional 15 days with cogent reasons
- Absolute cutoff: 60 days (no applications entertained after this)
Financial Requirement:
- Pay non-refundable processing fee of ₹10,000 + applicable taxes
- Fee jointly decided by stock exchanges, subject to revision
- No fee charged for suo-motu reviews by Exchange
Application Completeness:
- Incomplete applications without fee proof or requisite documents will not be processed
- Incomplete applications will stand closed
- Communications to any other email/address will not be considered
Important Dates
- August 5, 2025: SEBI circular issued (SEBI/HO/MRD/POD-III/CIR/P/2025/112)
- August 8, 2025: Exchange Notice No. 20250808-26 issued
- September 19, 2025: Review Committee becomes operational
- October 8, 2025: Current SOP circular issued
Impact Assessment
Positive Impacts:
- Provides formal grievance redressal mechanism for trading members
- Clear timelines and processes enhance transparency
- Two-tier review system ensures fair hearing
- Involvement of independent persons in Review Committee adds objectivity
Operational Impacts:
- Trading members facing penalties now have structured appeal process
- Processing fee requirement may deter frivolous appeals
- Strict 60-day absolute deadline requires prompt action by aggrieved members
- Centralized email submission ensures proper tracking
Compliance Burden:
- Members must maintain documentation to support appeals
- Financial cost of ₹10,000+ per appeal submission
- Need to monitor timelines carefully to avoid missing deadlines
- Incomplete applications will be summarily rejected, requiring diligence in preparation
Impact Justification
Establishes formal grievance mechanism for trading members against Member Committee penalties with clear timelines and processes, important for procedural compliance but limited to members facing regulatory actions