The National Commodity & Derivatives Exchange Limited (NCDEX), on July 13, 2026, issued a circular introducing a penalty framework for Trading Members that fail to maintain the minimum prescribed net worth, in continuation of its earlier circular on uniform disciplinary actions across Exchanges. The framework aligns with the Securities and Exchange Board of India (Stock Brokers) Regulations, 2026, which require stock brokers to maintain the prescribed minimum net worth at all times.
Under the revised framework, Trading Members reporting a net worth shortfall during periodic submissions will be subject 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 consecutive repeat instances. Additionally, where the Exchange identifies a net worth shortfall or incorrect reporting during member inspections, a penalty of 5% of the shortfall amount will be imposed along with administrative action for recoupment of the net worth deficiency, with enhanced penalties for repeat violations.
The revised penalty provisions are effective immediately and apply to all cases under process and all non-compliances identified or determined after the date of the circular. Trading Members are required to ensure continuous compliance with the prescribed net worth requirements and timely submission of accurate net worth certificates.
[Notification No. NCDEX/MEMBERSHIP-026/2026]
