Description

NSE advises trading members of a new Standard Operating Procedure (SOP) issued by Ministry of Home Affairs for NCRP and CFCFRMS, covering custody, restoration of money, and grievance redressal in cyber-enabled financial crimes. Members must note Para 9.6 regarding securities market-related transactions.

Summary

NSE has informed all trading members of a Standard Operating Procedure (SOP) formulated by the Ministry of Home Affairs (MHA) and Indian Cyber Crime Coordination Centre (I4C) for the National Cybercrime Reporting Portal (NCRP) and the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS). The SOP covers custody and restoration of money and grievance redressal in cases of cyber-enabled financial crimes. Trading members are specifically directed to note Para 9.6 of the SOP, which deals with measures applicable to mutual fund, trading, investment, and stock broking companies.

Key Points

  • The SOP is issued by MHA and Indian Cyber Crime Coordination Centre (I4C) effective January 2, 2026.
  • It establishes a uniform, transparent framework for handling cybercrime-related financial fraud complaints across all participating entities.
  • The SOP addresses actions by Law Enforcement Agencies (LEAs), Banks, Financial Intermediaries (FIs), and other stakeholders.
  • Para 9.6 specifically covers measures to be taken by Mutual Fund, Trading, Investment, and Stock Broking Companies — trading members must review and comply with this section.
  • Complaint registration processes are defined for NCRP, helpline 1930, bank-initiated reports, and police stations.
  • The SOP covers holding of amounts, suspension of digital banking services, and seizure of bank accounts or property.
  • A grievance redressal mechanism is established for disputes related to amounts put on hold or suspension of digital banking services.

Regulatory Changes

The SOP formalizes a previously informal or ad hoc process for handling cyber fraud complaints into a structured, legally backed framework. It defines roles and responsibilities for a wide range of financial intermediaries including stock brokers and trading members, establishing specific obligations (Para 9.6) that did not previously exist in a unified national framework.

Compliance Requirements

  • All trading members must read and familiarize themselves with the full SOP (Annexure A).
  • Members must specifically comply with Para 9.6: Measures to be taken by Mutual Fund, Trading, Investment, and Stock Broking Companies.
  • Members must ensure internal processes align with the SOP where applicable, including cooperation with LEA requests, handling of flagged accounts/funds, and grievance redressal.
  • Compliance is mandatory wherever the provisions are applicable to a member’s operations.

Important Dates

  • SOP Date: January 2, 2026 (date of the SOP document)
  • Circular Date: March 23, 2026 (NSE circular issuance date)
  • No specific deadline mentioned; compliance expected immediately upon receipt of circular.

Impact Assessment

This circular has a moderate operational impact on trading members. While it does not alter trading rules or market structure, it imposes compliance obligations around cybercrime reporting and cooperation with law enforcement. Members handling securities market transactions flagged under NCRP/CFCFRMS must follow the prescribed procedures in Para 9.6. Failure to comply could expose members to regulatory risk. The broader SOP affects banks, payment operators, VASPs, and other financial intermediaries, indicating a systemic national effort to combat cyber-enabled financial fraud.

Impact Justification

Mandatory compliance circular for all trading members regarding cybercrime reporting procedures; Para 9.6 specifically addresses securities market transactions but does not alter trading rules or market structure.