Mumbai: SEBI has asked BSE to keep a close watch on how Trading Members fix issues found during SEBI or joint inspections. This will begin from July 1, 2025.
When SEBI finds problems, it will inform a specific Stock Exchange (called the Assigned Stock Exchange). This exchange will then make sure that the Trading Member fixes those problems within a set deadline.
Trading Members must report and act on time
After getting instructions from SEBI, the Assigned Stock Exchange will inform the Trading Member. The Member must fix the issues and send a report in the Annexure 1 format. If they miss the deadline or do not send the report, there will be penalties.
Here is what will happen if deadlines are not followed:
1 to 15 days delay: Warning + Notice of penalty
16 to 30 days delay: Rs 2,500 fine per day + Warning about stopping new clients
31 to 45 days delay: Bar on taking new clients + Warning of disabling trading terminals
46+ days delay: Bar on new clients + Trading terminals disabled until problems are fixed
These actions will apply to any issue that is not corrected or not reported properly.
Internal auditors must check and certify
During their half-yearly audit, Trading Members must get their internal auditors (approved by the Exchange) to confirm if the corrections were made. The auditor must submit a certificate in Annexure 2 along with the audit report.
Later, the Exchange will inspect the Trading Member to double-check these reports. If the auditor or Member has submitted false or incorrect reports, stricter action will be taken. This includes penalties, treating the issue as 45+ days non-compliance, and possible action against the auditor.
Important dates and contact
These rules apply from July 1, 2025.
For help, Trading Members can contact: enforcement@bseindia.com
This notice has been issued by BSE Ltd.
