The National Stock Exchange of India has barred Yes Securities (India) Ltd. from onboarding new clients for a period of three months after finding violations related to margin collection norms and penalty recovery practices.
In its order, the NSE said the brokerage failed to maintain the required upfront margins in multiple instances and subsequently passed on the penalties imposed by the clearing corporation to its clients. The exchange observed that such practices were not in line with regulatory requirements governing broker conduct and client protection.
The disciplinary action comes amid tighter scrutiny by exchanges and market regulators on margin compliance following stricter risk management norms introduced in recent years. Upfront margin requirements are aimed at ensuring brokers collect adequate collateral from clients before executing trades, thereby reducing systemic risk in the market.
According to the NSE, Yes Securities transferred margin-related penalties levied by the clearing house to customers instead of bearing the costs itself. Exchanges generally hold trading members responsible for maintaining margin discipline, and brokers are expected to comply with these obligations without unfairly burdening clients.
ALSO READ: F&O Corner: NSE To Exclude Exide, Nuvama Wealth Contracts From July End
Apart from restricting the brokerage from signing up fresh customers for three months, the NSE's disciplinary committee also imposed a monetary penalty of Rs 1 lakh on the company for the violations.
The exchange further directed Yes Securities to refund the recovered amounts to affected clients within 15 days.
Amid other news, the National Stock Exchange on Friday released a list of two stocks that will be excluded from the derivatives segment from the end of July.
Exide Industries Ltd. and Nuvama Wealth Management Ltd. will be excluded from F&O contracts with effect from July 29, 2026.
NSE said the existing unexpired contracts of expiry months May 2026, June 2026 and July 2026 would continue to be available for trading till their respective expiries, and new strikes would also be introduced in the existing contract months.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.