Description

NSE extends deadlines for stock brokers to submit half-yearly networth certificates required for offering margin trading facility to clients.

Summary

NSE has relaxed the timeline for stock brokers to submit half-yearly networth certificates required to offer margin trading facility to clients. The new deadlines extend from the previous 30th April/31st October to 31st May/15th November, harmonizing with financial result declaration timelines under SEBI listing regulations.

Key Points

  • Timeline for networth certificate submission extended to provide operational relief
  • New deadlines align with existing financial reporting requirements
  • Certificate must confirm broker’s networth as on 31st March and 30th September
  • Changes effective immediately
  • Based on market participant representations and ease of doing business initiative

Regulatory Changes

  • Modified para 4.5.3 of Chapter 1 of Master Circular for Stock Exchanges and Clearing Corporations (SECC)
  • Previous deadline: Within 30 days (30th April for March, 31st October for September)
  • New deadline: Within 60 days for March half-year (31st May) and 45 days for September half-year (15th November)
  • Harmonized with Regulation 33 of SEBI LODR Regulations, 2015 timelines

Compliance Requirements

  • Stock brokers must submit half-yearly auditor certificate confirming networth
  • Certificate dates: As on 31st March and 30th September each year
  • Submission deadlines: Not later than 31st May and 15th November respectively
  • Stock exchanges must amend relevant bye-laws and regulations
  • Exchanges must notify members and publish on websites

Important Dates

  • Effective Date: August 28, 2025 (immediate effect)
  • Certificate Dates: 31st March and 30th September annually
  • New Submission Deadlines: 31st May and 15th November annually
  • SEBI Circular Reference: SEBI/HO/MRD/MRD-PoD-2/P/CIR/2025/120 dated August 26, 2025

Impact Assessment

  • Operational Relief: Provides additional time for brokers to compile and submit required documentation
  • Compliance Harmonization: Reduces regulatory burden by aligning with existing financial reporting cycles
  • Business Continuity: Ensures smoother operations for brokers offering margin trading facilities
  • Market Efficiency: Supports ease of doing business initiative while maintaining regulatory oversight

Impact Justification

Provides operational relief to stock brokers by extending compliance deadlines, harmonizing with existing financial reporting timelines