Kolkata, Sep 20 (PTI) A stock brokers' body has claimed that the regulators have agreed not to levy penalties on its members for deficiencies in reporting End of the Day (EoD) client margin allocation.

If SEBI, clearing corporations and bourses did not provide the “much required” relief, the cumulative penalty would have reached Rs 200 crore, Association of National Exchanges Members of India president Kamlesh Shah said, thanking them for the waiver.

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He said the relief was provided based on brokers' presentation seeking a "waiver of penalty" for August.

Brokers collect margins from their clients and they are supposed to report margin position to the authorities at the end of every day, which is termed EoD margin allocation.

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Regulators have brought some changes in the format and procedure for uploading the margin data daily. Brokers have been imposed penalties in August in case they fail to report that.

"We are pleased to note that penalties on EoD allocation for the month of August due to inability to complete allocations have been waived after our representation. We thank the exchanges and SEBI for addressing our concern,” Shah said.

Due to certain hiccups and teething issues with the different layers of the new system, brokers were unable to upload their data as per the required format and on time, he said.

The Commodity Participants Association of India president Narinder Wadhwa said that persistent efforts with SEBI & Exchanges have resulted in the waiver of the penalty.

"This will provide great relief to market intermediaries and we are thankful to the Exchanges and SEBI for taking this progressive step," Wadhwa said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)