Brokers hit hard as NSE Clearing blocks trading by IL&FS Securities

The ₹380-crore derivative fraud by Allied Financials is now turning into a major issue for IL&FS Securities. On Thursday, NSE Clearing Corporation (NCC) disabled IL&FS Securities as a clearing member following its inability to make good a few crore worth of pay-in obligations, sources involved in the negotiations told BusinessLine.

This resulted in chaos among stock brokers empanelled with IL&FS Securities as all their trading terminals were put in square-off mode, the sources said. This means they can trade only for unwinding of existing position, and not engage in new trade.

Experts observed that the situation at IL&FS Securities is precarious as brokers and clients are seeking a return of their deposits given as collateral and NCC is routinely pressing the clearing member to make good payment obligations on existing positions.