SEBI Extends Timeline for Stockbrokers to Submit Net Worth Certificates

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  • Last Updated on 28 August, 2025

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SEBI net worth certificate

Circular No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2025/120, Dated: 26.08.2025

1. SEBI Relaxes Timelines For Net Worth Certificate Submission

The Securities and Exchange Board of India (SEBI) has announced a relaxation and harmonisation of the timelines for submitting half-yearly net worth certificates by stockbrokers. This move is aimed at simplifying compliance requirements and ensuring consistency in reporting timelines for brokers who provide margin trading facilities to their clients.

2. Revised Due Dates For Submission

As per the revised framework, stockbrokers must now submit their net worth certificates twice a year within the newly prescribed timelines. The certificate as on March 31 is to be submitted by May 31, while the certificate as on September 30 must be submitted by November 15. This change provides brokers with adequate time to compile and furnish accurate information.

3. Ensuring Compliance With Margin Trading Norms

The submission of net worth certificates is a critical compliance requirement for brokers offering margin trading facilities, as it assures SEBI of their financial soundness and ability to extend credit to clients. The harmonisation of timelines eliminates ambiguities and facilitates better monitoring of brokers’ adherence to minimum net worth requirements prescribed by SEBI.

4. Immediate Applicability Of The Circular

SEBI has clarified that the provisions of this circular come into effect immediately, making it mandatory for stockbrokers to adhere to the revised submission schedule without delay. This step underscores SEBI’s commitment to maintaining a robust compliance framework while also easing the procedural burden on market intermediaries.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied