Description

BSE requires all active trading and clearing members to submit networth certificates and computation statements as on September 30, 2025, with minimum networth requirements ranging from Rs. 1 crore to Rs. 500 crores depending on membership type and segment.

Summary

BSE has issued requirements for all active members across Cash, Equity Derivatives, Currency Derivatives, Debt, Commodity Derivatives, EOP and EGR segments to submit their half-yearly networth certificate and computation statements as on September 30, 2025. The circular specifies minimum networth requirements based on membership type (Trading Member, Clearing Member, or Self-Clearing Member) and segment, 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 certificates and computation statements
  • A member is considered active even if they have not traded but have active terminals as on the reporting date
  • Members are only considered inactive if they have voluntarily closed business and informed the Exchange
  • Banks in currency derivatives segment have higher networth requirement of Rs. 500 crores
  • Banks can submit networth certificates as per RBI guidelines
  • Members with margin trading facility must maintain minimum networth of Rs. 3 crores
  • Certificate must be provided on letterhead of certifying Chartered Accountant or Company Secretary

Regulatory Changes

No new regulatory changes introduced. This circular reiterates existing half-yearly networth reporting requirements for the period ending September 30, 2025.

Compliance Requirements

Minimum Networth Requirements by Segment and Membership Type:

  • Trading Member (TM): Rs. 1 crore across all segments (Rs. 500 crores for banks in currency derivatives)
  • Trading and Clearing Member (TCM): Rs. 15 crores across all segments (Rs. 500 crores for banks in currency derivatives)
  • Self-Clearing Member (SCM): Rs. 5 crores across all segments (Rs. 500 crores for banks in currency derivatives)
  • Margin Trading Facility: Rs. 3 crores minimum

Segments Covered:

  • Cash Segment
  • Equity Derivatives Segment
  • Currency Derivatives Segment
  • Debt Segment
  • Commodity Derivatives Segment
  • EOP Segment
  • EGR Segment

Submission Requirements:

  • Networth certificate on CA/CS letterhead
  • Computation of networth as per prescribed format
  • Member must compute higher of ‘Base Networth’ or ‘Variable Networth’
  • Base networth to be mentioned for each applicable exchange (BSE/NSE/NCDEX/MCX/MSE)
  • Certificate must confirm member is not engaged in fund-based activities other than securities or commodity derivatives

Important Dates

  • Reporting Date: September 30, 2025
  • Circular Issue Date: October 17, 2025
  • Submission Deadline: Not explicitly stated in the provided content, but typically due within specified timeframe from reporting date

Impact Assessment

High Impact on:

  • All active BSE trading and clearing members across all segments
  • Members with margin trading facilities who must maintain higher Rs. 3 crore threshold
  • Banks operating in currency derivatives segment with Rs. 500 crore requirement

Operational Impact:

  • Members must engage Chartered Accountants or Company Secretaries to certify networth
  • Requires compilation of financial statements and networth computation as per prescribed methodology
  • Members active on multiple exchanges must report base networth for each exchange separately
  • Non-compliance could result in suspension of trading/clearing privileges or other regulatory action

Financial Impact:

  • Members must ensure adequate capital maintenance to meet segment-specific requirements
  • Members failing to meet minimum networth may face restrictions on trading activities
  • Capital adequacy verification ensures market stability and member solvency

Impact Justification

Mandatory regulatory compliance for all active BSE members across all segments with specific networth requirements. Non-compliance could lead to membership suspension or penalties.