Despite fundamental differences in the mechanical behaviour of stainless steel and carbon steel, design provisions for stainless steel connections in current standards essentially follow the rules for carbon steel with some limited modifications. For the case of net section capacity, the design rules from EN 1993-1-3 for cold-formed carbon steel have been adopted for stainless steel connections in EN 1993-1-4 and the SCI/Euro Inox Design Manual without any modification. In this paper, an investigation into the behaviour of stainless steel connections failing by net section rupture has been conducted. Numerical models for austenitic and ferritic stainless steel have been developed and validated against existing test results. The validated models were subsequently used to perform parametric studies to investigate the main parameters affecting the net section rupture of bolted connections; these include edge distance and bolt configuration. By studying the stress distribution along the net section for different edge distances and bolt arrangements, it was found that the ductility of stainless steel is sufficient to ensure extensive redistribution of stresses prior to fracture. Hence, a revised design equation (based on that given in EN 1993-1-3) for net section capacity of stainless steel connections has been proposed and its reliability demonstrated by means of statistical analysis.