Description

BSE requires all active members across trading segments to submit networth certificates and computation statements for the half-year ending September 30, 2025, with segment-specific minimum networth requirements.

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 half-yearly networth certificates and computation statements. The circular specifies minimum networth requirements varying by segment type and membership category (Trading Member, Clearing Member, or Self-Clearing Member), ranging from Rs. 1 crore to Rs. 500 crores for banks in currency derivatives.

Key Points

  • All active members across seven trading segments must submit networth certificates as on September 30, 2025
  • Minimum networth requirements vary by segment and membership type: TM (Rs. 1 crore), TCM (Rs. 15 crores), SCM (Rs. 5 crores)
  • 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
  • Members are considered active if trading terminals are active on September 30, 2025, even without trades during FY 2025-26
  • Banks may submit certificates as per RBI guidelines with Annexure-2 format
  • Inactive status only applies to members who voluntarily closed business and informed the exchange

Regulatory Changes

No new regulatory changes introduced. This circular reiterates existing networth requirements and submission procedures for the half-yearly compliance cycle ending September 30, 2025.

Compliance Requirements

Applicable Entities:

  • All active Trading Members (TM)
  • Trading and Clearing Members (TCM)
  • Trading and Self-Clearing Members (SCM)
  • Members registered in any BSE segment as on September 30, 2025

Submission Requirements:

  1. Networth certificate on chartered accountant/company secretary letterhead
  2. Computation of networth statement showing:
    • Base Networth (per exchange: BSE, NSE, NCDEX, MCX, MSE)
    • Variable Networth
    • Applicable Networth (higher of base or variable)
  3. Certification that member is not engaged in fund-based activities other than securities or commodity derivatives
  4. Confirmation that existing fund-based assets have been divested and excluded from networth calculation

Minimum Networth by Segment:

  • Cash Segment: TM Rs. 1 crore | TCM Rs. 15 crores | SCM Rs. 5 crores
  • Equity Derivatives: TM Rs. 1 crore | TCM Rs. 15 crores | SCM Rs. 5 crores
  • Currency Derivatives: TM Rs. 1 crore (Rs. 500 crores for banks) | TCM Rs. 15 crores (Rs. 500 crores for banks) | SCM Rs. 5 crores (Rs. 500 crores for banks)
  • Debt Segment: TM Rs. 1 crore | TCM Rs. 15 crores | SCM Rs. 5 crores
  • Commodity Derivatives: TM Rs. 1 crore | TCM Rs. 15 crores | SCM Rs. 5 crores
  • EGR Segment: TM Rs. 1 crore | TCM Rs. 15 crores | SCM Rs. 5 crores
  • EOP Segment: TM Rs. 1 crore only
  • Margin Trading Facility: Minimum Rs. 3 crores (additional requirement)

Important Dates

  • Reporting Date: September 30, 2025 (networth computation as on this date)
  • Circular Issue Date: October 17, 2025
  • Applicable Period: Half-year ending September 30, 2025 (FY 2025-26)

Impact Assessment

Operational Impact: All active members must ensure compliance with minimum networth requirements to maintain their trading and clearing memberships. Failure to meet networth thresholds or submit required documentation may result in suspension or restrictions on trading activities.

Member Categories Affected:

  • High impact on banks operating in currency derivatives (Rs. 500 crores requirement)
  • Medium impact on clearing members across all segments (Rs. 15 crores requirement)
  • Members with margin trading facilities face enhanced requirement (Rs. 3 crores minimum)

Compliance Burden: Members registered across multiple segments must ensure their networth meets the highest applicable requirement among all segments. The submission requires professional certification from chartered accountants or company secretaries, adding to compliance costs.

Market Stability: Networth requirements serve as financial safeguards ensuring that members have adequate capital to meet their obligations, thereby protecting market integrity and reducing systemic risk across BSE’s trading ecosystem.

Impact Justification

Mandatory regulatory compliance requirement for all active BSE members with specific networth thresholds that determine their ability to continue operations across trading segments