Anmi seeks waiver of fine imposed on stockbrokers for client margin rules: Newsdrum

New Delhi, Aug 24 (PTI) The Anmi Securities Brokers Association has requested a waiver from the sanctions imposed on these traders for reporting a shortfall in collecting client collateral for a period of at least 15 days starting August 1.

Under Sebi’s rules, stockbrokers must pay fines for reporting a shortfall in collecting client collateral.

In a letter to market regulator Sebi on August 19, the exchanges – BSE and NSE – and their respective clearing houses, the Association of National Exchange Members of India (Anmi), also demanded reimbursement of the fines imposed on its members for loss of earnings. in collection during the said period.

In addition, he requested an extension to submit the final award files from the 8:00 p.m. deadline to the next day at 12:00 p.m.

“These reforms will help make it easier to conduct business while maintaining necessary compliances. We are confident that regulators and exchanges will see merit in our recommendations and make the necessary changes,” said Kamlesh Shah, Chairman of Anmi.

Apart from these demands, Anmi, in his letter, also highlighted the technical issues and infrastructure issues at the level of clearing companies that securities brokers are facing. Also, they are having problems downloading the allocation file.

Consequently, the Anmi asked to consider “the waiver of the penalties applicable in the event of loss of profit on the basis of the minimum initial margins EOD (end of day) for a period of at least 15 days (from the 1st August 2022)”.

Anmi, a group of about 900 stockbrokers across the country, surveyed its members and received responses from 204, and 29 of whom reported that they were fined more than Rs 36 crore. was imposed for loss of profits. collaterals.

Sebi’s margin rules require trading members to collect the amount in advance (pre-trade) at the time clients enter the relevant positions or undertake the relevant trades. The rule that was put in place last year restricted brokers’ ability to fund clients’ intraday positions.

As per the rules, brokers are required to take four margin snapshots during the session at random times and based on this, the snapshot with the highest margin requirement is considered for payout. Previously, this was only done at the end of the day.

In May, the Securities and Exchange Board of India (Sebi) changed the rules, making start-of-day margin tip margin. This concerns only the collection of the initial margin. The framework came into effect on August 1. PTI SP SHW

Dolores W. Simon