FYERS

[anildnr]

Again same problem today..orders are rejected

 

[sach007]

Latest Notice:
NSE F&O Segment blocked by the exchange

Please go through this.

Why would NSE block particular segment ?

What is going wrong?

Who is clearing member?

 

[anildnr]

What are the other broker names that are affected

 

[marimuthu13]

Why would NSE block particular segment ?

What is going wrong?

Who is clearing member?

NSE has not blocked anything..F&O segment is very active with my other brokers... maybe issue with brokers who has a tie-up with ILFS alone..

 

[anildnr]

Any update on this

 

[Tejas Khoday]

Brokers hit hard as NSE Clearing blocks trading by IL&FS Securities
https://www.thehindubusinessline.co...rading-by-ilfs-securities/article28713353.ece

"On Thursday, NSE Clearing Corporation (NCC) disabled IL&FS Securities as a clearing member following its inability to make good a few crore worth of pay-in obligations, sources involved in the negotiations told BusinessLine.

This resulted in chaos among stock brokers empanelled with IL&FS Securities as all their trading terminals were put in square-off mode, the sources said. This means they can trade only for unwinding of existing position, and not engage in new trade.

Experts observed that the situation at IL&FS Securities is precarious as brokers and clients are seeking a return of their deposits given as collateral and NCC is routinely pressing the clearing member to make good payment obligations on existing positions.
***

IL&FS Securities landed in a soup after it came to light that Allied Financial, which was trading through it, had used up client collateral as its own on proprietary trades. Allied lost on its trade but the payment obligation has reached the courts. Other client deposits lying with IL&FS Securities as collateral are now stuck at NCC, which wants to be on the safer side if the court decides against Allied and does not allow its funds to be used for payment. In that case, NCC will ensure that IL&FS Securities, as the clearing member, is held responsible, experts said.

“There are 21 broker members who have complained to us against IL&FS Securities for blocking their funds and not giving them no-objection certificates (NOC) to shift their businesses else where,” said Vijay Bhushan, President, Association of National Exchanges Members of India. “Thursday was chaotic as many members said their terminals were on square off mode.”

Brokers say there could be further issues if IL&FS Securities is not able to match its pay-in next week, too. It is not giving an NOC to brokers to shift as it would then have to settle their accounts by returning the collateral money, which it can’t do currently as the cash and other assets are stuck at NCC, sources said. While some large brokers have managed to extract an NOC and shift their business elsewhere, 40-50 small and mid-sized brokers are still stuck with IL&FS, sources said."

Is it the same IL&FS where Fyers Clients are compelled to open their Demat Accounts?

Hello @MetatraderUser,

Currently, we link third-party Demats for intraday trading and yes, for delivery it was ISSL. However, we don't compel our clients to open an account with them. If they don't want to open, we're happy to open just the trading account and most of our clients have opened a trading account alone. Please note that our DP license application is with SEBI for approval. We expect that it will be done in a month. We decided to get our own DP a long long time ago but the process of getting a license is eternal in India. Hence, the delay. We are on it and I will be the happiest person to announce when we get the license.

More importantly, the DP holdings are in the client beneficiary accounts (Client Demat Accounts) and not the broker pool accounts. In this context, it is in the safekeeping custody of CDSL.

 

[bull375]

I am glad I continued with my Sharekhan broker for delivery trades without opening DP account with IL&FS as I did not feel safe using IL&FS demat after their exposure to massive debts. How did Allied financial end up using clients collateral? Aren't clients accounts segregated from company's account?

 

[Tejas Khoday]

I warned in my thread get out of ILFS or any broker or instutution that has even slightest of known issues. You don't want to be the last man standing .This is bound to happen.
Tejas here repeatedly said no issues with ILFS.
Now I want to ask who is reponsible for traders loss. NSE/ the broker ??

@bpr,

When I posted that message, obligation pay-ins & pay-outs were going on without any glitches whatsoever. Currently, there is a liquidity shortage due to some trade settlement issue between ISSL & NSE which is why F&O segment is blocked at their end as a result of that, over 40-50 brokers are affected. I doubt if NSE will refund anybody's incidental losses but you can write to them asking not to punish other brokers & their clients as a result of wrongdoing/mismanagement by someone else.

 

[Tejas Khoday]

this is quite scary for traders. i have opened trading account with fyers few days back because of its charting, which is excellent. now need to think seriously to trade in it. better to take paid subscription of tradingview and continue with my existing broker.

Hey @primitivetrader, I understand your feelings. This segment block is not restricted to FYERS alone. 40-50 brokers have been affected because of it and at the end of the day, the regulator has to take a call on it. It is really pathetic that the retail traders & unrelated parties are being punished for someone else's wrongdoings/mismanagement. I can assure you that we are doing our best and have done a great deal to mitigate IL&FS risk. I will be writing about this soon. In the meantime, FYI trading is available without any hinderances in Equity, Currency & Commodities.

 

[Tejas Khoday]

Again same problem today..orders are rejected

Please refer to our latest notice.