The Securities and Exchange Board of India (Sebi) is examining if brokers should be barred from offering clearing and settlement services, after the regulator found
had illegally sold client stocks pledged to it for loans, two people directly aware of the matter said.“We have been getting lots of complaints regarding defaults by brokers in payouts to clients. We are working on improving systems and processes with regard to handling of client money by brokers," a Sebi official, one of the two people cited above, said on condition of anonymity. One of the policy changes that Sebi is considering is
from settling and clearing trades, the person said.