The Bombay Stock Exchange (BSE) on April 17, 2026, issued the notification regarding the Ease of Doing Business - Rationalization and Standardization of penalties levied on Trading Members.
The following has been stated namely: -
• The notice builds on earlier disciplinary actions (Oct 2025) and aims to standardize penalties for Trading Members across exchanges based on recommendations approved by Securities and Exchange Board of India.
• A revised and consolidated list of violations/non-compliances with corresponding penalties has been issued (Annexure 1), including new and modified items.
• The provisions apply immediately to:
o Ongoing cases where penalties are reduced
o Violations occurring after the notice
o Compliance submissions due after the notice date
• The relevant authority can impose additional actions such as suspension, expulsion, disabling terminals, or restricting onboarding of clients.
• If the penalty amount is less than ₹1,000, the Exchange will issue an “Advise” instead of monetary penalty.
• Repeated violations will attract escalated penalties, including increases in maximum capped penalties as per defined slabs.
• If total penalties exceed ₹1 crore or 20% of net worth (whichever is lower) in a financial year, the case will be referred to the authority for further action.
• Non-critical violations not covered will follow a graded approach:
Advise → Warning → ₹5,000 penalty for repeated instances.
[Notification No. 20260417-45]
