Description

NSE requires trading members with Margin Trading Facility approval to submit compliance certificates through ENIT portal by October 31, 2025.

Summary

NSE has issued instructions for trading members to submit Margin Trading Facility (MTF) compliance certificates for the half year ended September 30, 2025. Members who have commenced MTF must submit a Chartered Accountant-audited compliance certificate, while those who have obtained approval but not commenced operations must submit a self-certified certificate. All submissions must be made through the ENIT portal by October 31, 2025.

Key Points

  • Trading members with active MTF operations must submit CA-audited compliance certificate (Annexure I format)
  • Trading members with MTF approval but not commenced must submit self-certified certificate signed by Compliance Officer/Designated Director (Annexure II format)
  • Submissions must be done through ENIT module at path: ENIT-New-Compliance > Compliance > MTR > MTR Compliance Certificate submission
  • ENIT portal URL: https://enit.nseindia.com/MemberPortal/
  • User manual provided as Annexure III for submission process
  • Helpdesk support available at 1800 266 0050 (IVR option 3) or memcompliance_support@nse.co.in
  • Reference to previous circular NSE/COMP/70618 dated October 03, 2025

Regulatory Changes

No new regulatory changes introduced. This circular enforces existing compliance requirements as per previous circulars:

  • NSE/COMP/35125 dated June 15, 2017
  • NSE/COMP/35260 dated June 30, 2017
  • NSE/COMP/35521 dated August 03, 2017
  • NSE/COMP/36350 dated November 22, 2017
  • NSE/COMP/63887 dated September 12, 2024
  • NSE/COMP/64519 dated October 11, 2024

Compliance Requirements

For Members with Active MTF Operations:

  • Get books of accounts related to margin trading facility audited by Chartered Accountant
  • Submit compliance certificate on CA letterhead with:
    • Verification statement of relevant books, records, and documents
    • Certification of compliance with MTF conditions
    • CA signature, seal, membership number, and UDIN number
    • Reporting period: relevant dates within half year ended September 30, 2025

For Members with MTF Approval but Not Commenced:

  • Submit self-certified certificate on trading member letterhead
  • Certificate must state that MTF approval obtained but not provided to any client
  • Must be signed and sealed by Compliance Officer or Designated Director
  • Specify the period covered

Submission Process:

  • Use ENIT portal only (no manual/email submissions mentioned)
  • Access through member credentials
  • Navigate to Compliance > MTR > MTR Compliance Certificate submission
  • Follow user manual (Annexure III) for step-by-step guidance

Important Dates

  • Circular Issue Date: October 16, 2025
  • Reporting Period: Half year ended September 30, 2025
  • Submission Deadline: October 31, 2025
  • Reference Circular Date: October 03, 2025 (NSE/COMP/70618)

Impact Assessment

Operational Impact:

  • Affects only trading members who have obtained approval for offering Margin Trading Facility
  • Members with active MTF operations must engage Chartered Accountants for audit, incurring audit costs and administrative time
  • Members must ensure timely coordination with CAs to meet October 31 deadline
  • ENIT portal submission requirement necessitates familiarity with online submission process

Compliance Impact:

  • Non-submission by deadline may result in regulatory action or penalties (not specified in circular)
  • Members need to maintain proper books and records for MTF operations for audit purposes
  • Self-certification option for non-commenced operations reduces compliance burden for inactive members

Market Impact:

  • Limited direct market impact as this is an administrative compliance requirement
  • Ensures regulatory oversight of margin trading operations and risk management
  • Supports investor protection by verifying member compliance with MTF conditions

Stakeholder Impact:

  • Trading members: Administrative and audit compliance burden
  • Chartered Accountants: Engagement opportunity for MTF audit work
  • NSE Compliance Department: Monitoring and enforcement of MTF regulations
  • Investors: Indirect benefit through enhanced oversight of margin trading operations

Impact Justification

Routine compliance requirement for trading members offering Margin Trading Facility. Affects only members with MTF approval, with clear deadline and submission process.