Brokers aren't happy with SEBI's latest proposal: Any profits from trading mistakes would go to the Investor Protection Fund, while brokers themselves would have to cover all losses.
They feel this move limits their flexibility and doesn't guarantee they'll actually make profits on trades.
SEBI says the changes are meant to stop misuse of error accounts and keep market risks in check.
Brokers want targeted crackdowns, SEBI silent
Right now, brokers move mistaken trades into special error accounts before closing them out, a process that can get risky if large sums are involved.
SEBI worries some might misuse these accounts or even dodge taxes by tweaking client codes.
But brokers argue that modern tech already helps spot real errors versus shady moves, so they're asking for targeted crackdowns on wrongdoers instead of blanket rules for everyone.
SEBI hasn't responded publicly yet.