Brokers urge Sebi to review 'harsh' 100% penalty on margin reporting

Industry body Anmi writes to market regulator seeking leeway

Brokers have urged Securities and Exchange board of India (Sebi) to review the penalty structure on margin reporting. The market regulator has directed exchanges to levy stringent penalty of up to 100 per cent, along with suspension of trading, on false reporting of client margins by brokers.

The industry body Association of National Exchanges Members of India (Anmi) has written to the regulator asking for leeway.

"We are of the strong opinion that 100 per cent penalty for mis-reporting is very harsh and not required in all instances of false margin reporting," Anmi has said in a letter to Sebi.

Sebi has asked