SEBI circular SEBI/HO/MRD/MRD-PoD-2/P/CIR/2025/120 · 26 Aug 2025
Official title
Relaxation in the timeline to submit net worth certificate by the Stock Brokers to offer margin trading facility to their clients
Summary
Check the official recordThe Securities and Exchange Board of India (SEBI) has revised the submission deadlines for the half-yearly net worth certificate required for stock brokers to offer margin trading facilities. Previously, these certificates were due by April 30 and October 31. To harmonize these requirements with financial reporting timelines under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the deadlines have been extended. Stock brokers must now submit the auditor-certified net worth certificate to their respective stock exchanges by May 31 for the half-year ending March 31, and by November 15 for the half-year ending September 30. These changes are effective immediately and apply to all stock brokers offering margin trading facilities.
What you must do
Key dates
Who is affected
[Image omitted. See the official document.]
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.
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[Image omitted. See the official document.]
“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 confirming the net worth. Such a certificate shall be submitted not later than 31st May and 15th November every year.”
The provisions of this circular shall come into effect immediately.
The Stock Exchanges are advised to:
6.1. Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision, as may be necessary/applicable.
6.2. Bring the provisions of this circular to the notice of their members and to disseminate the same on their website.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
This circular is available on SEBI website at www.sebi.gov.in at “Legal → Circulars”.
Yours faithfully,
Sanjay Singh Bhati Deputy General Manager Market Regulation Department Email: ssbhati@sebi.gov.in Phone number: 022-26449222
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