Leading stock exchange BSE today said it will compile database of clients who have failed to make payments of arbitration awards to the stock brokers.
Accordingly, the exchange has created a separate module in the BSE electronic filing system (BEFS) wherein the trading members can submit the details of such defaulting clients to the exchange.
The move comes after trading members asked BSE to initiate action against the clients defaulting in making payments to the members against the arbitration awards.
"Trading members are hereby informed that the exchange has decided to compile the database of clients of trading members who default in making payments to the members towards the arbitration awards obtained by members against the said clients," BSE said in a notice.
The exchange said it would initiate actions against such clients as per the regulations of the exchange, which provide for restraining the other trading members from executing any trades on behalf of such defaulting clients.
"Trading Members are requested to take notice of the same and report about their defaulting clients through BEFS, under the option 'reporting of clients in default'," BSE said.
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