Pay Debit Account Shortfall, Bse Tells Errant Members

The deadline for payment is December 9, and the BSE governing board in its meeting scheduled for December 10 is expected to take a decision on these brokers. Sources said the brokers BOLT terminals have been de-activated. The total outstanding amount runs into a couple of crores.

These brokers have accumulated a large debit balance in their Valan accounts and also in their general charges account. The debit balance has been accumulating over the last three to four months and the BSE decided to swing into action, sources pointed out. The BOLT terminals, according to sources, were de-activated due to various reasons, the principal being non-payment of margins.

 

The debit balance in the brokers accounts are on the rise due to bad deliveries and also because of the interest charges slapped by the exchange on the margin amounts. The bourse has asked its members to clear their dues and pay back the debit balance. The outstanding amount ranges from Rs 1 crore to Rs 2 lakh.

Exchange sources said six or seven of the brokers (with manageable outstanding) yesterday sold their shares and have paid their dues. However, this could not be confirmed.

The move to issue an ultimatum follows a decision taken to this effect at the exchanges Disciplinary Action Committee (DAC) meeting held on Thursday. The BSE action comes as a follow-up to Sebi query on why the bourse has been bailing out brokers by permitting large outstanding debit balances in the clearing out accounts. The biggest debit balance is said to be to the tune of Rs 1.79 crore.