The Securities and Exchange Board of India (“SEBI”), in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, vide Circular No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2025/120,[1] dated August 26, 2025, has revised the timeline for submission of the net worth certificate to align with the financial reporting timelines under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
As per Para 4.5.3 of Chapter 1 of the Master Circular for Stock Exchanges and Clearing Corporations (SECC) dated December 30, 2024, stock-bokers offering Margin Trading Facility (MTF) were required to submit a half-yearly net worth certificate (as on March 31 and September 30) from an auditor by April 30 and October 31, respectively.
Revised Timelines:
Stock brokers shall now submit the auditor-certified net worth certificate:
- By May 31 for the half-year ending March 31
- By November 15 for the half-year ending September 30
Implications:
This relaxation provides stock brokers additional time to comply with net worth certification requirements, aligning the process with broader financial reporting obligations.
[1] https://www.sebi.gov.in/legal/circulars/aug-2025/relaxation-in-the-timeline-to-submit-net-worth-certificate-by-the-stock-brokers-to-offer-margin-trading-facility-to-their-clients_96305.html