On Friday, Brokers linked to IL&FS Securities Services (ISSL) were once again not allowed to put in fresh orders morning after the clearing arm of IL&FS failed to fulfill its settlement payment obligations. In early trades of Thursday as well, these entities faced similar issues for almost two hours.
In a motive to sort these issues, the Association of National Exchanges Members of India has organized a conference call between its members, ISSL and NSE Clearing.
IL&FS Securities Services is a clearing member. For the settlement of the trades of their clients, smaller brokers take the help of these third-party clearing members.
About Rs 380 crore of IL&FS Securities Services is stuck because of fraudulent trades by one of the members, Allied Financial Services. It is alleged that Allied Financial had stolen the mutual fund units it used as collateral largely from the cement-to-sugar conglomerate Dalmia Bharat Group.