BSE, India’s leading stock exchange, today put in place a graded penalty mechanism for brokers failing to make timely submission of networth certificate for margin trading.
The brokers will be required to submit to the exchange half yearly networth certificate as on March 31 from an auditor confirming it by April 30, whereas that for the half year ending September 30 will be submitted by October 31.
A fine of £1.06 per day will be imposed for first month from the due date, which will be raised to £2.12 each day for second month after due date and £3.18 per day “till the date of submission or date of discontinuation of margin Trading facility whichever is earlier”.
As per norms, corporate brokers with a net worth of at least £316647.93 are eligible for offering margin trading facility to their clients.
According to a BSE circular, “Trading members who are availing margin trading facility are hereby requested to furnish networth certificate as on March 31, 2016 duly certified by Auditor”.
It further said that the networth certificate should be submitted in the prescribed format. In case, brokers fail to submit the same in the prescribed format, it will not be taken on record.
The circular mentioned, “Fines will be imposed if the same is not submitted in the prescribed format on or before April 30, 2016”.
