InvestorQ : What is the reason behind the NSE penalizing over 50 of its brokers in the last few days?
Sam Eswaran made post

What is the reason behind the NSE penalizing over 50 of its brokers in the last few days?

Answer
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swati Bakhda answered.
6 months ago


These penalties pertain to the circular brought out by SEBI last month barring brokers from taking fresh short positions in the market unless they had underlying positions, once the limit was breached. However, SEBI found that more than 50 brokers had breached the limits. Brokers have protested that brokers are being penalized while the regulator has been lenient with mutual funds and other global institutional investors. Brokers have also asked for more time to abide by all the conditions of the circular since they were stuck with limited time to adhere. The new rules were supposed to put many stocks out of the tradable list and impose restrictions on these F&O contracts. The limits are monitored by the clearing members.