Payment Crisis: Bse Unplugs 7 Brokers

This is independent of the action taken earlier by the exchange on the two brokers who were declared defaulters on Tuesday.

Exchange sources said BSE authorities have identified at least five to six brokers who could have had a poor financial position over the past two settlements and are taking precautions to avoid a ballooning of the crisis.

The exchange is set to meet next week to consider a further tightening of the existing margin system.

This could be related to changes in the basic margin imposition by which the exemption limit could be reduced further. The collection of margins is also set to undergo a change.

It had been seen that adequate control measures like regular payment of special and ad hoc margins by the brokers was being carried out, but the crisis is yet took place..it would be necessary to have a re-look at the margin system to see what further needs to be done, a senior BSE official said.

While a clear view on the matter is yet to be taken, the exchange is likely to bring in changes in the gross exposure margins.

The collection procedure may also be altered, whereby banks would be authorised to debit the brokers' account directly with the cheque paid for margin money.

At present, margin money cheques take at least a day for clearance.

The exchange had been monitoring the positions of Shrenik Shah and Shailesh Bajaj