The National Stock Exchange (NSE) on July 13, 2026, notified regarding the Penalty for failure to maintain the minimum prescribed net worth.
The following has been stated:
• NSE has introduced a penalty framework for Trading Members reporting shortfalls in the minimum net worth required under the Securities and Exchange Board of India (Stock Brokers) Regulations, 2026. With immediate effect, Trading Members reporting a net worth shortfall in their half-yearly or annual submissions will be liable to a monetary penalty of 2% of the shortfall amount (subject to a minimum of ₹10,000 and a maximum of ₹2,00,000), with a 50% escalation for repeat violations.
• Additionally, where net worth shortfalls or incorrect reporting are identified during Exchange inspections, a penalty of 5% of the shortfall amount, along with administrative action for recoupment of the net worth deficiency, will apply, with enhanced penalties for subsequent violations.
• The revised provisions apply immediately to all ongoing and future non-compliance cases.
[Notification no. - NSE/COMP/75164]
