Clarification to Rule 8(1)(f) and 8(3)(f) of Securities Contracts (Regulation) Rules, 1957
BSE notice 20260623-29 · 23 Jun 2026
Official record
Open source pageSummary
Check the official recordWhat changed
The Department of Economic Affairs amended the Securities Contracts (Regulation) Rules, 1957. The amendment clarifies that member investments do not constitute business. This exclusion does not apply if the investments involve client funds or client securities. It also does not apply if the investments create a financial liability for the broker. The Exchange modified the list of activities that constitute non-compliance with Rule 8(1)(f) and Rule 8(3)(f). The Exchange deleted points 3 to 12 from the previous illustrative list of non-compliant activities. Members must review the updated list and the provided FAQs to ensure compliance with these rules.
What you must do
- Members must comply with the modified list of activities construed as non-compliance to Rule 8(1)(f) and 8(3)(f).
Key dates
- Date of amendment publication in the Gazette of India
- 19 May 2025
Document text
NOTICE
| Notice No. | 20260623-29 |
|---|---|
| Notice Date | 23 Jun 2026 |
| Category | Compliance |
| Segment | General |
| Department | DOSS |
| Subject | Clarification to Rule 8(1)(f) and 8(3)(f) of Securities Contracts (Regulation) Rules, 1957 |
| Attachments | Annexure_A |
Department of Economic Affairs, Ministry of Finance has published the amendment of Securities Contracts (Regulation) Rules, 1957 in the Gazette of India on May 19, 2025. The following Proviso has been inserted to Rule 8 (1)(f) and 8 (3)(f) which is as under: -
In Rule 8 of the Securities Contracts (Regulation) Rules, 1957,
(i) in sub-rule(1), in clause (f), after the first proviso, the following proviso shall be inserted, namely:
“Provided further that investments made by a member shall not be construed as business except when such investments involve client funds or client securities or relate to arrangements which are in the nature of creating a financial liability on the broker.”
(ii) in sub-rule(3), after clause (f), following proviso shall be inserted, namely:-
“Provided further that investments made by a member shall not be construed as business except when such investments involve client funds or client securities or relate to arrangements which are in the nature of creating a financial liability on the broker.”
In view of the above amendment, Point No. 1 and 2 of illustrative list of activities issued vide Exchange Notice No. 20220107-45 dated January 07, 2022 which are construed as non-compliance to Rule 8(1)(f) and 8(3)(f) of SCRR, if undertaken by a member, are modified as below: --
-
Issuing Corporate Guarantees towards credit facilities availed by any entity, including group companies such as subsidiaries & associates etc. of the Member.
-
Deposit pledged with the bank for overdraft facilities availed by any entity, including the group companies such as subsidiaries & associates etc. of the Member.
Further, Point No. 3 to 12 of illustrative list of activities as prescribed in Exchange Notice No. 20220107-45 dated January 07, 2022 stand deleted.
FAQs on the illustrative list of activities that were construed as non-compliance to Rule 8(1)(f) and 8(3)(f) of SCRR, if undertaken by a member, are provided in Annexure A.
Members are advised to take note of the above and comply.
In case of any clarifications, members may contact us on details given as under:
| Contact Nos | Email Id |
|---|---|
| 022-69158540 | Bse.inspection@bseindia.com |
| 022-45720640 | |
| 022-45720440 |
For and on behalf of BSE Ltd.
Hiteshkumar Desai
Vice President
Member Oversight
Kaustubh Mundada
Assistant Vice President
Member Oversight
Source details
- Source
- BSE Ltd (Bombay Stock Exchange)
- Type
- notice
- Published by source
- 23 Jun 2026
- Document number
- 20260623-29
- Issuing division
- DOSS
- Coverage area
- securities