SEBI/HO/MRD/MRD - PoD - 2/P/CIR/2025/120 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MRD/MRD - PoD - 2/P/CIR/2025/120 August 26 , 2025 To , All Recognised Stock Exchanges All Stock Brokers through Recognised Stock Exchanges Dear Sir/ Madam, Sub: Relaxation in timeline to submit net worth certificate by Stock Brokers to offer margin trading facility to their clients Para 4.5.3 of Chapter 1 of the Master Circular for Stock Exchanges and Clearing Corporations (SECC) dated December 30, 2024, states that in order to be eligible to offer the margin trading facility to their clients , the Stock Brokers shall submit to the stock exchange(s) a half-yearly certificate, as on 31st March and 30th September of each year, from an auditor confirming the net worth. Such a certificate shall be submitted not later than 30th April and 31st October of every year. Based on representations received from market participants and with a view to promote ease of doing business, it has been decided to harmonize the timelines for the Stock Brokers to submit the net worth certificate under the aforesaid Master Circular with the timelines for declaration of the financial results as per Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015. Accordingly, in order to be eligible to offer the margin trading facility to their clients, the Stock Brokers shall submit the certificate as stated in para 1 above within 45 days from the half year ended on September 30 and within 60 days from the half year ended on 31st March . In view of the above, para 4.5.3 of Chapter 1 of the Master Circular for Stock Exchanges and Clearing Corporations (SECC) dated December 30, 2024, shall be modified as follows: " The broker shall submit to the stock exchange a half-yearly certificate, as on 31st March and 30th September of each year, from an auditor co