The Securities and Exchange Board of India (SEBI) has extended the deadline for stock brokers to submit their net worth certificates needed for offering margin trading facilities.
This step aims to make compliance easier and support the ease of doing business, according to PTI reports.
Previous Rule
Brokers had to submit auditor’s certificates confirming their net worth twice a year—
As of March 31 (submission by April 30)
As of September 30 (submission by October 31)
New Deadline
SEBI received several requests from market participants to extend the dates. Considering this, SEBI has aligned the submission timeline with financial results filed under LODR (Listing Obligation and Disclosure Requirement) rules.
For half year ending September 30 → certificate must be submitted within 45 days (by November 15)
For half year ending March 31 → certificate must be submitted within 60 days (by May 31)
This change has come into effect immediately. SEBI has also asked stock exchanges to amend their bye-laws, rules, and regulations accordingly and inform members about the update.
SEBI’s Proposal on Bulk Deals
Apart from the deadline change, SEBI has also proposed an amendment related to bulk deals.
Current minimum order size: ₹10 crore (in place since 2017)
Proposed new limit: ₹25 crore
Bulk deals form a major part of stock market turnover and take place through a single transaction between a buyer and a seller.
These are allowed only during a 15-minute special window, which opens twice a day.
SEBI, in its consultation paper, suggested that the minimum bulk deal order size should now be ₹25 crore.
