Leading bourse National Stock Exchange (NSE) has asked brokers to submit networth certificate for margin trading by the end of this month to avoid any penalty.
In a circular, NSE said brokers will have to submit to the exchange half yearly networth certificate as on March 31 by May 31 “in order to avoid any delayed/non-submission charges.”
It has also put in place a graded penalty mechanism for brokers who fail to make the required timely submission.
The fine of Rs 100 per day will be slapped for first month from the due date Rs 200 each day for second month after due date and Rs 300 each day for third month after due date and “thereafter the matter shall be placed before relevant authority for appropriate decision/actions.”
As per norms, corporate brokers with a net worth of at least Rs 3 crore are eligible for offering margin trading facility to their clients.
Besides, NSE said that shortfall in net worth would result in blockage of deposits.
