Mumbai: The Stock Exchange of India has barred Yes Securities from onboarding new clients for a period of three months after identifying violations related to upfront margin collection and penalty recovery practices.
In its disciplinary order, the NSE said the brokerage failed to maintain the required upfront margins in several instances and later transferred the penalties imposed by the clearing corporation to its clients.
According to the exchange, such practices violated regulatory norms designed to ensure proper broker conduct and protect investor interests.
The action comes amid heightened scrutiny by stock exchanges and market regulators over margin compliance following stricter risk management rules introduced in recent years.
Upfront margin requirements are intended to ensure brokers collect sufficient collateral from clients before executing trades, thereby helping reduce systemic risks in the financial markets.
The NSE observed that Yes Securities passed on margin-related penalties levied by the clearing house to customers instead of absorbing the costs itself.
Under exchange regulations, trading members are responsible for maintaining margin discipline and are expected to comply without unfairly burdening clients.
Apart from restricting the brokerage from adding new customers for three months, the exchange’s disciplinary committee also imposed a monetary penalty of Rs 1 lakh on the company.
The NSE further directed Yes Securities to refund the amounts recovered from affected clients within 15 days.
Meanwhile, in a separate development, the NSE Friday announced the exclusion of two stocks from the derivatives segment starting July 29, 2026.
Exide Industries and Nuvama Wealth Management will be removed from futures and options (F& O) trading from the end of July next year.
The exchange clarified that all existing unexpired contracts for May 2026, June 2026 and July 2026 expiry cycles will continue to remain available for trading until their respective expiry dates.
New strike prices will also continue to be introduced in the existing contract months.
