SEBI Tightens Rules For Trading Members, BSE To Monitor Corrective Actions After Inspections

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.

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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.

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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.