INSUBCONTINENT EXCLUSIVE:
NEW DELHI: BSE has asked brokers to take into consideration excess cash of clients lying with them to calculate their net obligation before
levying late payment charges
The clarification comes following communication from the Securities and Exchange Board of India regarding references from investors 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," BSE has said in a notice
The notice further said "excess securities held with the broker are only for the purpose of meeting margin requirements, and not for
settlement" and added that "stock brokers are advised to comply with above mentioned requirement"
In a separate notice, BSE said that the stock brokers were required to submit the system audit report for the period ended March 31, 2018
latest by June 30 this year
Following non or late submission of the report, charges of Rs 100 per day will be levied for the month of July 2018
Further, from August 1, the exchange will withdraw "BOLT/BOLTPLUS/IML" facility (trading facilities) for non-submission of system audit
