"Sebi had pulled up at least three brokerages, including a leading discount broking firm in the last one year for providing excessive leverage to their clients. The cases involve build-up of short positions in some of the blue-chip labels during the results season.
In one of the cases, the brokerage was providing its clients as much as 100 times leverage and this prompted several investors to take huge positions in a blue-chip auto stock. “The stock fell 7-8 per cent creating panic among
among investors. The brokerage almost went to the extent of a default,” said another person cited above."
I suppose we all know about this incident and who the broker is