Description
Trading members must submit half-yearly networth certificates as on September 30, 2025, certifying compliance with base networth requirement of Rs 1 crore across Capital Market, F&O, Currency, Commodity and Debt segments.
Summary
NSE has issued a circular requiring all trading members to submit half-yearly networth certificates as on September 30, 2025. Trading members must maintain and certify networth as prescribed by the Exchange at all times per continuing membership norms. The base networth requirement is Rs 1,00,00,000 (Rs 1 crore) for all trading members registered in Capital Market, Futures & Options, Currency Derivatives, Commodity Derivative, and Debt segments as per SEBI Gazette Notification No. SEBI/LAD-NRO/GN/2022/73 dated February 23, 2022.
Key Points
- Base networth requirement: Rs 1,00,00,000 across NSE, BSE, NCDEX, MCX, and MSE segments
- Applicable networth is higher of ‘Base Networth’ or ‘Variable Networth’
- Networth computation method prescribed by Schedule VI of SEBI (Stock Brokers) (Amendment) Regulations, 2022
- Certificate must be provided on letterhead of certifying Chartered Accountant or Company Secretary
- Separate certificate formats provided for corporates/firms/individuals and banks
- Certificate must include UDIN (Unique Document Identification Number)
- Certifying CA/CS must confirm they are not related party to the entity
- Members not engaged in fund-based activities must divest existing fund-based assets from books
Regulatory Changes
No new regulatory changes introduced in this circular. This is a periodic compliance requirement based on existing SEBI regulations:
- SEBI Gazette Notification No. SEBI/LAD-NRO/GN/2022/73 dated February 23, 2022 (revised networth requirement)
- SEBI (Stock Brokers) (Amendment) Regulations, 2022, Schedule VI (networth computation method)
Compliance Requirements
Applicable to: All trading members of NSE registered in Capital Market, Futures & Options, Currency Derivatives, Commodity Derivative, and Debt segments
Requirements:
- Submit half-yearly networth certificate as on September 30, 2025
- Certificate must be certified by qualified Chartered Accountant or Company Secretary
- Certify maintenance of applicable networth (higher of base or variable networth)
- Provide computation statement showing networth calculation
- Confirm non-engagement in fund-based activities other than securities/commodity derivatives
- Include UDIN for audit trail and authenticity
- Certifying professional must confirm independence (not related party)
- Use prescribed Format C-1 (separate formats for corporates/firms/individuals vs. banks)
- Include PAN details of certifying firm, partners/proprietor, and all directors/partners
- Computation must be based on standalone financial statements (audited or unaudited)
Important Dates
- Networth certification date: September 30, 2025
- Submission deadline: Not explicitly stated in the provided content; members should refer to main circular or NSE guidelines for submission timeline
Impact Assessment
Regulatory Impact:
- Ensures ongoing financial soundness of trading members
- Maintains investor protection standards through minimum capital requirements
- Enables regulatory oversight of broker financial health
Operational Impact:
- Trading members must engage qualified CA/CS for certification
- Requires preparation and review of financial statements
- Members must ensure compliance to maintain exchange membership
- Non-compliance may result in membership suspension or termination
Market Impact:
- Low direct market impact as this is routine compliance requirement
- Indirectly supports market integrity by ensuring broker financial stability
- Maintains confidence in market infrastructure and participant reliability
Impact Justification
Mandatory compliance requirement for all trading members to certify minimum networth as per SEBI regulations; non-compliance could lead to membership suspension or termination