The Bombay Stock Exchange (BSE) on June 23, 2026, issued the notification regarding the Clarification to Rule 8(1)(f) and 8(3)(f) of Securities Contracts (Regulation) Rules, 1957.
The following has been stated namely: -
• Investments made by a stock broker/member will not be considered a business activity, provided they do not involve client funds, client securities, or create financial liabilities for the broker.
• Investments will still be treated as business activities if they:
o Use client funds or securities, or
o Involve arrangements that create financial liabilities for the broker.
• The earlier list of prohibited activities has been narrowed. Only the following remain as examples of non-compliance:
o Issuing corporate guarantees for loans/credit facilities of other entities, including group companies.
o Pledging deposits for overdraft facilities availed by other entities, including group companies.
• Points 3 to 12 of the illustrative list of non-compliant activities issued under the Exchange Notice dated January 07, 2022 have been deleted, and updated FAQs have been provided in Annexure A.
[Notification No. 20260623-29]
