Description

BSE requires all active members across all segments to submit Networth Certificate and Computation of Networth as on September 30, 2025, meeting minimum networth requirements based on membership type.

Summary

BSE mandates all active members as on September 30, 2025, across Cash, Equity Derivative, Currency Derivative, Debt, Commodity Derivative, EOP, and EGR segments to submit Networth Certificate and Computation of Networth. The requirements vary based on membership type (Trading Member, Clearing Member, or Self-Clearing Member) with minimum networth ranging from Rs. 1 crore to Rs. 500 crores for banks in currency derivatives.

Key Points

  • All active members as on September 30, 2025 must submit Networth Certificate and Computation
  • Minimum networth requirements vary by segment and membership type
  • Trading Members (TM) require minimum Rs. 1 crore networth across all segments
  • Clearing Members (TCM) require minimum Rs. 15 crores networth
  • Self-Clearing Members (SCM) require minimum Rs. 5 crores networth
  • Banks in Currency Derivatives segment require Rs. 500 crores networth regardless of membership type
  • Members with margin trading facility require minimum Rs. 3 crores networth
  • Banks can submit networth certificate as per RBI guidelines
  • Members are considered active if trading terminals are active on September 30, 2025, even without trading activity
  • Members are inactive only if they have voluntarily closed business and informed the Exchange

Regulatory Changes

No new regulatory changes introduced. This is a periodic compliance requirement for the half-year ending September 30, 2025.

Compliance Requirements

Applicable Entities

  • All active Trading Members (TM)
  • All active Trading and Clearing Members (TCM)
  • All active Trading and Self-Clearing Members (SCM)
  • Members registered in Cash, Equity Derivatives, Currency Derivatives, Commodity Derivatives, Debt, EOP, and/or EGR segments

Submission Requirements

  1. Networth Certificate on letterhead of certifying Chartered Accountant or Company Secretary
  2. Computation of Networth as per applicable annexures
  3. Certificate must include:
    • Member name
    • Base Networth amount for each applicable exchange (BSE, NSE, NCDEX, MCX, MSE)
    • Variable Networth amount
    • Higher of Base or Variable Networth
    • Confirmation that member is not engaged in fund-based activities other than securities or commodity derivatives

Minimum Networth by Segment

Standard Segments:

  • Cash: TM (Rs. 1 cr), TCM (Rs. 15 cr), SCM (Rs. 5 cr)
  • Equity Derivatives: TM (Rs. 1 cr), TCM (Rs. 15 cr), SCM (Rs. 5 cr)
  • Currency Derivatives: TM (Rs. 1 cr / Rs. 500 cr for Banks), TCM (Rs. 15 cr / Rs. 500 cr for Banks), SCM (Rs. 5 cr / Rs. 500 cr for Banks)
  • Debt: TM (Rs. 1 cr), TCM (Rs. 15 cr), SCM (Rs. 5 cr)
  • Commodity Derivatives: TM (Rs. 1 cr), TCM (Rs. 15 cr), SCM (Rs. 5 cr)
  • EGR: TM (Rs. 1 cr), TCM (Rs. 15 cr), SCM (Rs. 5 cr)
  • EOP: TM (Rs. 1 cr), TCM (N/A), SCM (N/A)

Special Requirements:

  • Margin Trading Facility: Minimum Rs. 3 crores

Important Dates

  • Reference Date: September 30, 2025 (networth calculation date)
  • Submission Deadline: Not explicitly stated in the circular content provided, but implied to be after September 30, 2025

Impact Assessment

Operational Impact

  • High impact on all active BSE members across all trading segments
  • Members must ensure compliance with minimum networth requirements or face potential regulatory action
  • Administrative burden on members to prepare and submit certified documents
  • Chartered Accountants and Company Secretaries required for certification

Market Impact

  • Ensures financial stability of market participants
  • Protects market integrity by verifying adequate capital requirements
  • Members not meeting requirements may face trading restrictions or membership suspension

Compliance Impact

  • Non-submission or failure to meet networth requirements may result in:
    • Trading restrictions
    • Penalty charges
    • Potential suspension of membership
    • Regulatory enforcement actions

Member Categories Affected

  • Trading members across all segments
  • Clearing members
  • Self-clearing members
  • Banks operating in currency derivatives
  • Members with margin trading facilities

Impact Justification

Mandatory regulatory compliance requirement for all active BSE members across all segments with specific networth thresholds that must be certified by September 30, 2025