 "The National Stock Exchange (NSE) has flagged compliance lapses among stock brokers involving margin trading, client fund handling, surveillance and cybersecurity, following inspections conducted between October 2025 and March 2026.")
Following recent inspections, the National Stock Exchange (NSE) has flagged instances of brokers failing to collect adequate margins for the margin trading facility (MTF) and extending the facility against ineligible securities.
The observations cover October 2025 to March 2026.
The exchange said some brokers had not collected adequate margins in the form of cash, cash equivalents or Group I equity shares, with appropriate haircuts. Others had provided MTF in securities other than Group I — the eligible securities.
The circular also flagged lapses in handling client money. These included payouts to clients in excess of their available credit balances,
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First Published: Oct 29 2026 | 1:24 PM IST