The National Stock Exchange of India has taken action against Yes Securities, preventing them from accepting new clients for three months due to violations related to upfront margin collection and penalty recovery practices. The NSE found that Yes Securities failed to maintain required upfront margins and passed on penalties to clients, breaching regulatory norms aimed at ensuring fair broker conduct and protecting investor interests. This move follows increased scrutiny by stock exchanges and regulators on margin compliance in line with stricter risk management regulations.
The NSE noted that Yes Securities transferred margin-related penalties to customers instead of bearing the costs itself, contrary to exchange regulations that expect trading members to uphold margin discipline without unfairly impacting clients. In addition to the client onboarding restriction, the NSE’s disciplinary committee imposed a Rs 1 lakh monetary penalty on Yes Securities and mandated the company to refund affected clients within 15 days.
In a separate development, the NSE announced the exclusion of Exide Industries and Nuvama Wealth Management from the derivatives segment starting July 29, 2026. These two stocks will no longer be available for futures and options trading from the specified date, although existing contracts for May, June, and July 2026 expiry cycles will remain tradable until their respective expiration dates. New strike prices will also be introduced in the ongoing contract months.
