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Criteria | Details |
Status | Indian Citizen |
Age | Minimum 21 years |
Education | At least HSC (Higher Secondary Certificate) or equivalent qualification |
Experience | Minimum 2 years as a partner, authorised assistant, authorised clerk, remisier, or apprentice to a member |
Dominant Promoter Norms | Identify partner’s sharing interest as per Exchange DPG norms |
Criteria | Details |
Status | Registered Partnership firm under Indian Partnership Act, 1932 |
Designated Partners | Identify at least two partners as designated partners responsible for day-to-day management |
Age of Designated Partners | Minimum 21 years |
Education of Designated Partners | At least HSC or equivalent qualification |
Experience of Designated Partners | Minimum 2 years in securities, portfolio management, investment consulting, financial services, or related experience |
Dominant Promoter Norms | Identify partner’s sharing interest as per Exchange DPG norms |
Criteria | Details |
Status | Registered LLP under Limited Liability Partnership Act, 2008 |
Designated Partners | At least two designated partners responsible for day-to-day management |
Age of Designated Partners | Minimum 21 years |
Education of Designated Partners | At least HSC or equivalent qualification |
Experience of Designated Partners | Minimum 2 years in securities, portfolio management, investment consulting, financial services, or related experience |
Dominant Promoter Norms | Identify partner’s sharing interest as per Exchange DPG norms |
Criteria | Details |
Status | Registered under The Companies Act, 1956 |
Minimum Paid-up Equity Capital | ₹30 lakhs |
Designated Directors | At least two designated directors responsible for day-to-day trading operations |
Age of Designated Directors | Minimum 21 years |
Education of Designated Directors | At least HSC or equivalent qualification |
Experience of Designated Directors | Minimum 2 years in securities, portfolio management, investment consulting, financial services, or related experience |
Dominant Promoter Norms | Identify dominant group as per Exchange DPG norms |
Criteria | Details |
Eligible Entities | SEBI Registered Custodians or Banks recognized by NSE/NSE Clearing |
Criteria | Details |
Eligible Banks | Banks authorized by RBI under section 10 of the Foreign Exchange Management Act, 1999 (AD Category – I banks) |
Minimum Net Worth | ₹500 crores |
Minimum CRAR | 10% |
Net NPA | Should not exceed 3% |
Profit Requirement | Must have made a net profit in the last 3 years |
Category | Base Minimum Capital (BMC) Requirement (₹ in Lakhs) |
Trading Member (TM) | 10 (Non-Algorithmic) |
Trading cum Self-Clearing Member (TMSCM) | 10 (Non-Algorithmic) |
Trading cum Clearing Member (TMCM) | 25 (Non-Algorithmic) |
Professional Clearing Member (PCM) | 50 (Algorithmic) |
Note | Cash and cash equivalent in a ratio of 1:3, no exposure on BMC |
Criteria | Details |
Eligible Entities | Scheduled commercial banks, primary dealers, pension funds, provident funds, insurance companies, etc. |
BMC Requirement | As per SEBI circular on “Requirement of Base Minimum Capital” |
IFSD Deposit for Self-Clearing/Professional Clearing | ₹1 lakh |
Additional Deposit for Clearing | ₹10 lakhs (no exposure provided against this deposit) |
Annual Fee for Professional Clearing Members | ₹50,000 |
To become a member of a stock exchange, the applicant (either the proprietor, one designated director/partner, or the Compliance Officer) must be certified in one of the following modules, based on the segment of membership
This certification requirement is an ongoing admission norm for membership. Additionally, the exchange may set specific standards for investor services and infrastructure, depending on the applicant category.
Trading Category | Base Minimum Capital (₹ in Lakhs) |
Proprietary trading without Algorithmic | 10 |
Trading on behalf of Client (without Algorithmic) | 15 |
Proprietary and Client trading without Algorithmic | 25 |
All Trading Members/Brokers with Algorithmic | 50 |
Note | BMC shall be blocked from NSE deposits of Capital Market segment. No exposure allowed for trades. |
Criteria | Details |
Status | Indian Citizen |
Age | Minimum 21 years |
Education | At least HSC (Higher Secondary Certificate) or equivalent qualification |
Experience | Minimum 2 years as a partner, authorised assistant, authorised clerk, remisier, or apprentice to a member |
Dominant Promoter Norms | Identify partner’s sharing interest as per Exchange DPG norms |
Criteria | Details |
Status | Registered Partnership firm under Indian Partnership Act, 1932 |
Designated Partners | Identify at least two partners as designated partners responsible for day-to-day management |
Age of Designated Partners | Minimum 21 years |
Education of Designated Partners | At least HSC or equivalent qualification |
Experience of Designated Partners | Minimum 2 years in securities, portfolio management, investment consulting, financial services, or related experience |
Dominant Promoter Norms | Identify partner’s sharing interest as per Exchange DPG norms |
Criteria | Details |
Eligible Persons | A body corporate, which includes companies and other legal entities recognized as separate legal persons under law. |
Ineligibility Criteria | |
1. Winding Up Liability | A body corporate shall not be admitted as a trading member if it has committed any act that renders it liable to be wound up under the provisions of applicable law. This includes acts that could lead to insolvency or bankruptcy proceedings. |
2. Appointment of Liquidator | A company or body corporate is ineligible if it has had a provisional liquidator, receiver, or official liquidator appointed. This indicates that the entity is undergoing financial distress or liquidation proceedings, making it unsuitable for trading membership. |
Ineligibility Criteria | Details |
1. Age Requirement | Individuals must be at least 21 years old. |
2. Engagement in Other Businesses | Individuals engaged in businesses other than securities must sever connections upon admission. |
3. Winding Up Liability | Bodies corporate that have committed acts rendering them liable to be wound up are ineligible. |
4. Liquidation Status | Companies or bodies corporate with a provisional liquidator, receiver, or official liquidator appointed are ineligible. |
5. Bankruptcy | Individuals adjudged bankrupt or proven insolvent are ineligible, even if they have obtained a final discharge. |
6. Criminal Conviction | Conviction for fraud or dishonesty renders a person ineligible. |
7. Debt Compounding | Individuals who have compounded with creditors for less than full discharge of debts are ineligible. |
8. Expulsion or Default | Expulsion or declaration as a defaulter by any stock exchange makes one ineligible. |
9. Previous Refusal of Membership | Previously refused admission is disqualifying unless one year has passed since rejection. |
10. Legal Disqualification | Any disqualification under the Securities Contracts (Regulation) Act, 1956, or other applicable laws disqualifies a person. |
11. Minor Partner in Partnership | A partnership with a minor partner (registered under Indian Partnership Act or LLP Act, 2008) is ineligible. |
DEPOSIT STRUCTURE (₹ in lakhs) | |||||||
Segment | Type of Membership | Cash-NSE | Non-Cash NSE | Cash NSE Clearing | Non-Cash NSE Clearing | Total | |
Capital Market Segment | TM | 85 | – | – | – | 85 | |
TM & SCM | 85 | – | 15 | 0 | 100 | ||
TM & CM | 85 | – | 25 | 25 | 135 | ||
PCM | – | – | 25 | 25 | 50 | ||
Futures & Options Segment | TM | 25 | – | – | – | 25 | |
TM & SCM | 25 | – | 25 | 25 | 75 | ||
TM & CM | 25 | – | 25 | 25 | 75 | ||
PCM | – | – | 25 | 25 | 50 | ||
Currency Derivatives Segment | Existing Members | TM | 2 | 8 | – | – | 10 |
TM & SCM | 2 | 8 | 25 | 25 | 60 | ||
TM & CM | 2 | 8 | 25 | 25 | 60 | ||
New Members | TM | 2 | 13 | – | – | 15 | |
TM & SCM | 2 | 18 | 25 | 25 | 70 | ||
TM & CM | 2 | 18 | 25 | 25 | 70 | ||
PCM | – | – | 25 | 25 | 50 | ||
Commodity Derivatives Segment # | TM | – | 0.5 | – | – | 0.5 | |
TM & SCM | – | 0.5 | 25 | 25 | 50.5 | ||
TM & CM | – | 0.5 | 25 | 25 | 50.5 | ||
PCM | – | – | 25 | 25 | 50 | ||
Debt Segment | Existing Members | TM | BMC* | – | – | – | – |
TM & SCM | BMC* | – | 1 | – | 1 | ||
TM & CM | BMC* | – | 1 | – | 1 | ||
PCM | – | – | 1 | – | 1 | ||
New Members | TM | BMC* | – | – | – | – | |
TM & SCM | BMC* | – | 10 | – | 10 | ||
TM & CM | BMC* | – | 10 | – | 10 | ||
PCM | – | – | 10 | – | 10 | ||
* TM = Trading Membership.
* TM & SCM = Trading and Self Clearing Membership.
* TM & CM = Trading and Clearing Membership.
* PCM = Professional Clearing Membership.
# NSE Commodity derivatives segment – INR 50,000/- (non-cash) as membership deposit will be applicable to all new Members in Commodity Derivatives segment w.e.f. April 01, 2024.
* BMC = Base Minimum Capital requirement as per Exchange circular no-827 (Download Ref No-NSE/MEM/23082) dated March 28, 2013
* In Debt Segment, approved Government Securities are accepted as a form of security deposits/ minimum base capital in addition to Cash, Bank Guarantees (BG) and FDRs w.e.f November 07,2019.
Method of computation applicable is as prescribed by Schedule VI of Securities and Exchange Board of India (Stock Brokers) (Amendment) Regulations, 2022.
Segment | Type of Membership | Revised Base Networth – Applicable from 23.02.2023 (Effective 31.03.2023 submissions) | Revised Base Networth – Applicable from 23.02.2024 (Effective 31.03.2024 submissions) | ||
Corporate/LLP | Firm / Individual | Corporate/LLP | Firm / Individual | ||
Capital Market | TM | 0.75 Crore | 0.75 Crore | 1 Crore | 1 Crore |
TM (Alpha) | 0.50 Crore | 0.50 Crore | 1 Crore | 1 Crore | |
TM & SCM | 3 Crore | 3 Crore | 5 Crore | 5 Crore | |
TM & CM | 10 Crore | 10 Crore | 15 Crore | 15 Crore | |
PCM | 25 Crore | NA | 50 Crore | NA | |
Futures & Options | TM | 1 Crore | 0.75 Crore | 1 Crore | 1 Crore |
TM (Alpha) | 0.50 Crore | 0.50 Crore | 1 Crore | 1 Crore | |
TM & SCM | 3 Crore | 3 Crore | 5 Crore | 5 Crore | |
TM & CM | 10 Crores | 10 Crores | 15 Crores | 15 Crores | |
PCM | 25 Crores | NA | 50 Crores | NA | |
Currency Derivatives | TM | 1 Crore | 1 Crore | 1 Crore | 1 Crore |
TM & SCM | 5 Crores | 5 Crores | 5 Crore | 5 Crores | |
TM & CM | 10 Crores | 10 Crores | 15 Crore | 15 Crore | |
PCM | 25 Crores | NA | 50 Crore | NA | |
Commodity Derivatives | TM | 0.50 Crore | 0.50 Crore | 1 Crore | 1 Crore |
TM & SCM | 3 Crore | 3 Crore | 5 Crore | 5 Crore | |
TM & CM | 10 Crores | 10 Crores | 15 Crore | 15 Crore | |
PCM | 25 Crores | NA | 50 Crore | NA | |
Debt Segment | TM | 0.50 Crore | 0.50 Crore | 1 Crore | 1 Crore |
TM & SCM | 3 Crore | 3 Crore | 5 Crore | 5 Crore | |
TM & CM | 10 Crores | 10 Crores | 15 Crore | 15 Crore | |
PCM | 25 Crores | NA | 50 Crore | NA | |
TM = Registered Trading Membership. | |||||
TM & SCM = Registered Trading and Self Clearing Membership. | |||||
TM & CM = Registered Trading and Clearing Membership. | |||||
PCM = Registered Professional Clearing Membership. | |||||
Dominant Promoter Group norms (DPG norms) for foreign entities
| Criteria | Requirement |
| Foreign Entity Stake | The foreign entity must hold directly or indirectly at least 51% of the controlling stake in the applicant company. |
| FIPB/RBI/SEBI Compliance | Must comply with FIPB, RBI, SEBI, and Exchange norms. |
| Category of Foreign Promoting Entity | Requirements |
| Bank/Insurance Company | – Must be regulated by the Central Bank or relevant regulatory authority of its country. – Must have a net worth of at least Rs. 50 Crores. |
| Broking House/Securities Market Participant | – Must be registered or regulated by a relevant regulatory authority of its country. – The authority must be a member of the International Organization of Securities Commissions (IOSCO). – Must have a net worth of at least Rs. 50 Crores. |
| Government-Owned Finance/Development Institution | – Must be a government-owned finance and/or development institution with a net worth of at least Rs. 50 Crores. |
| Pension Fund/Sovereign Wealth Fund/Broad-Based Investment Fund | – Must be registered or regulated by the relevant authority of its country, or be exempt from registration. – Must have at least USD 50 million in Assets Under Management (AUM). – The ultimate fund should have AUM of at least USD 200 million, with a direct investing fund/scheme having AUM of USD 50 million. |
| Domestic Arm/Subsidiary of Foreign Entity | – Must be registered with or regulated by an Indian regulatory authority (RBI, SEBI, IRDA, PFRDA) or as decided by the Exchange. – Must have a net worth of at least Rs. 50 Crores. |
₹ 10,000/- + Applicable Tax.
1. Not applicable for Alpha Category.
2. For all segments (except “exclusive Commodity” and “exclusive Debt segment”): Rs. 5,00,000/- plus applicable tax.
3. For Exclusive Debt segment: Rs. 1,00,000/- plus applicable tax.
4. For Exclusive Commodity segment: Rs. 50,000 /-.
5. Rs.50,000/- (if the applicant applies for Cash, FO, CD and COM segments collectively)
The purpose of the SEBI Regulation on Stock Broker is to establish a comprehensive framework that governs the conduct and operations of Stock Broker in India.
It sets clear criteria for the registration and operation of stock brokers, ensuring that only qualified and compliant entities participate in the market.
The regulation mandates proper record-keeping and disclosure, promoting transparency in brokerage operations and fostering investor trust.
It provides mechanisms for regular inspections and audits, holding brokers accountable for adherence to legal and ethical standards.
By outlining obligations and responsibilities, the regulation aims to safeguard investor interests and maintain the integrity of the securities market.
For ease of reference, a comprehensive table of contents detailing all areas covered in the Regulation is provided below:
Chapter Number | Chapter Name | Brief Description |
I | Preliminary | Introduces the regulation, including its title and definitions. |
II | Registration of Stock Brokers | Outlines the process for applying, registering, and maintaining stock broker status, including fee payments and operational conditions. |
II (A) | Registration of Clearing Members | Details the registration process for clearing members, including application, fees, and operational approvals. |
III | Registration of Sub-Brokers | Chapter III, omitted by SEBI (Stock Brokers and Sub-Brokers) (Second Amendment.) Regulations, 2018 w.e.f 01-04-2019. |
IV | General Obligations and Responsibilities | Specifies the obligations of stock brokers regarding record maintenance, compliance officers, and prohibitions on dealing with unregistered sub-brokers. |
V | Procedure for Inspection | Describes the SEBI’s rights to inspect brokers, the inspection process, and the responsibilities of brokers during inspections. |
VI | Procedure for Action in Case of Default | Details liabilities for non-compliance with regulations, including penalties, inquiries, and prosecution. |
VII | Miscellaneous | Grants SEBI powers to clarify procedures and address any difficulties arising from the regulation. |
For more information, please refer to the SEBI Regulation using the link below for complete details:
SEBI | Securities and Exchange Board of India (Stock Brokers) Regulations 1992
The Securities and Exchange Board of India (SEBI) issues various circulars and guidelines to Stock Brokers to ensure a regulated, transparent, and efficient securities market. This Master Circular consolidates all relevant circulars and directives into a single document, allowing users to access critical provisions easily.
To provide a single point of reference for Stock Brokers regarding all relevant regulations.
To clarify the obligations and requirements for Stock Brokers, ensuring adherence to SEBI guidelines.
To facilitate smoother operational processes through updated directives, enhancing efficiency in the securities market.
Cut-off Date
This Master Circular is based on guidelines issued up to August 09, 2024
Compliance Reminder
All Stock Brokers and market participants are advised to ensure compliance with the provisions outlined in this Master Circular.
For ease of reference, a comprehensive table of contents detailing all areas covered in the Master Circular is provided below:
Sr. No. | Subject |
I | REGISTRATION OF STOCK BROKERS |
II | SUPERVISION & OVERSIGHT |
III | DEALINGS WITH CLIENT |
IV | TECHNOLOGY RELATED PROVISIONS |
V | CHANGE IN STATUS, CONSTITUTION, CONTROL, AFFILIATION |
VI | FOREIGN ACCOUNTS TAX COMPLIANCE ACT RELATED PROVISIONS |
VII | INVESTOR GRIEVANCE REDRESSAL |
VIII | DEFAULT RELATED PROVISIONS |
IX | MISCELLANEOUS |
X | REPORTING REQUIREMENTS |
For more information, please refer to the SEBI Master Circular using the link below for complete details:
Criteria | Details |
Bankruptcy or Insolvency | Adjudged bankrupt, receiver order, or proven insolvent |
Criminal Convictions | Convicted of an offense involving fraud or dishonesty |
Business Conflict | Engaged in business other than securities (except as a broker or agent not involving personal financial liability) |
Expulsion or Debarment | Expelled or declared defaulter by any other Stock Exchange, debarred from trading by SEBI, RBI, etc. |
Other Disqualification | Incurs disqualification under Securities Contract (Regulations) Act, 1956, or NSE’s public interest |
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