Brokers to pay fine for networth certificate submission delay

Leading stock exchange BSE today put in place a graded penalty mechanism for brokers who fail to make timely submission of networth certificate for margin trading.
The brokers will have to submit to the exchange half yearly networth certificate as on March 31 from an auditor confirming it by April 30, while that for the half year ending September 30 will be submitted by October 31.
The fine of Rs 100 per day will be slapped for first month from the due date and Rs 200 each day for second month after due date and Rs 300 per day "till the date of submission or date of discontinuation of margin Trading facility whichever is earlier".

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.
"Trading members who are availing margin trading facility are hereby requested to furnish networth certificate as on March 31, 2016 duly certified by Auditor," BSE said in a circular.
It further said that the networth certificate should be submitted in the prescribed format. In case, brokers fail to submit the same in the prescribed format, it will not be taken on record.
"Fines will be imposed if the same is not submitted in the prescribed format on or before April 30, 2016," it added.