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The National Stock Exchange (NSE) has put off till September 15 the imposition of penalty on brokers for not collecting adequate margins.
SEBI had changed the margin collection norm from September 1 but the process was of to a shaky start as it was marred by tech glitches. A significant fall in derivative positions was noticed on the back of the chaos.
In a circular issued late on Thursday, the NSE said: “It has been decided to not levy penalty for client margin short/non-collection and reporting in the cash and derivatives segment. This provision shall be applicable for a period of 15 days — from September 1, 2020 to September 15, 2020 — to facilitate a smooth transition for members to the new system.”
The Association of National Exchanges Members of India had requested for a relaxation on Thursday.
Stock market trading had been disrupted for three days this week and pay-in and pay-out were delayed for the first time in 25 years on the NSE.
The pay-in/pay-out and collateral management system of the National Securities Clearing Corporation Ltd, a wholly owned subsidiary of NSE, was affected.
Brokers were complaining that the tech systems of exchange clearing corporations (CCs) and depository participants (DPs) were jammed due to overload. Margins collected for trading limits were not reflecting correctly with the CCs, they said. In the past three days, auction of shares due to margin shortfall shot-up to more than ₹100 crore, data showed.
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