Exchange has received communication from SEBI regarding references being received from investors stating that the brokers are levying late payment charges for debit balances even though the clients have credit balance with the broker, instead of levying the same on the net debit balance.
It is clarified that excess cash with the stock broker may be considered for off-setting against debit balance to calculate net obligation. Further, excess securities held with the broker are only for the purpose of meeting margin requirements, and not for settlement.
Stock Brokers are advised to comply with above mentioned requirement.
For and On behalf of BSE Ltd.
Gopalkrishnan Iyer Hitasha Gurbani
Sr. General Manager Asst. General Manager
(Brokers’ Supervision) (Brokers’ Supervision)