Sebi Extends Broker Net Worth Certificate Deadline

New Delhi, Aug 26 (PTI) Sebi on Tuesday extended the timeline for stock brokers to submit their net worth certificate required for offering margin trading facilities to clients to relax the compliance burden and promote ease of doing business.

As per current norms, in order to be eligible to offer the margin trading facility to their clients, stock brokers are required to submit a half-yearly certificate from an auditor confirming their net worth as of March 31 and September 30 every year.

These were to be submitted to stock exchanges by April 30 and October 31, respectively.

However, the regulator said it has received several representations from market participants requesting more time.


Taking into consideration these submissions, Sebi stated it has been decided to harmonise the timelines for the stock brokers to submit the net worth certificate under norms with the timelines for declaration of the financial results as per LODR (Listing Obligation and Disclosure Requirement) regulations.

Accordingly, the stock brokers will submit the auditor's certificate within 45 days from the half-year ended on September 30 and within 60 days from the half-year ended on March 31, as per the circular.

This effectively extends the submission deadlines to November 15 and May 31, instead of October 31 and April 30, respectively. The new framework is effective immediately.

The Securities and Exchange Board of India (Sebi) has directed stock exchanges to amend their bye-laws, rules and regulations to incorporate the revised provisions and disseminate the circular among their members.