Earlier, the members were required to pay this amount during the banking hours on the next day. DSE president Sudhir Joshi said: "The measure is temporary and will be revoked as soon as the situation becomes normal."

The exchange had two defaulters during the last settlement period. According to Mr Joshi: "The defaults were only technical. The two brokers had to pay close to Rs 70 lakh, and we had securities worth Rs 60 lakh. The shortfall was met from the settlement guarantee fund (SGF)." He was confident that the current settlement will pass on smoothly. "We are also monitoring the outstanding positions of brokers on a day to day basis, marking them to the market," he added. Mr Joshi was, however, not in favour of imposing any additional margins. "In the current scenario, it is difficult for an individual exchange to impose additional margins, as the markets largely interlinked, making any such move ineffective. Secondly, it will further burden the brokers and may increase defaults, sending out negative signals."

He also suggested that if the regulator wanted to reduce panic selling, it could have been asked the brokers to steadily reduce their outstanding positions.

Mr Joshi welcomed the decision to suspend some broker directors of the Bombay Stock Exchange if they were guilty. However, he added: "What was disturbing was the timing of their suspension as the move spread panic in the markets."

He was not in favour of barring broker directors from trading: "It will not solve the purpose because if a director has access to privileged information, he may take advantage by trading through others."