Apart from the controversy with the bankers, the CSE top brass was grappling with yet another problem with the brokers over the encashment of the latter's base minimum capital. Each broker has Rs 8 lakh as base minimum capital and another Rs 2.5 lakh as trade guarantee fund with the exchange.

CSE sources say that HDFC Bank has refused to encash the bank guarantees of the defaulting brokers. CSE was in the grip of a payment crisis with three brokers - Mr DK Singhania, a former president of the exchange, Mr Ashok Poddar and Mr Harish Biyani - unable to keep their commitments.

The three brokers had a reported shortfall of Rs 95 crore during the March 8 settlement. Again, in the following settlement of March 15, Mr Biyani alone had a shortfall of Rs 22 crore.

Two officials from the Securities & Exchange Board of India (Sebi) have been camping in the city for the last couple of days to supervise the pay-out. It is understood that a part of the trade guarantee fund was liquidated in addition to utilising the base minimum capital of the brokers to bridge the shortfall during the pay-out. CSE sources pointed out that the exchange has been dragging its feet over officially announcing the errant brokers as defaulters. They said that with this official announcement, banks will be no position to revoke their bank guarantees.

In fact, the banks too have a problem. If they revoke the guarantee without the exchange declaring these brokers as defaulters, then it might find itself on sticky wicket over dues recovery from the brokers.Surprisingly, CSE executive director Tapas Dutta told a news agency that the payout has been completed. CSE chief Kamal Parekh told presspersons that the March 9 payout had been delayed while categorically stating that there was no shortfall. However, later reports said that there was a Rs 16 crore shortfall. The brokers are agitated over the fact that their base minimum capital has been utilised to meet the shortfall. Some brokers said that the instruction to use the base capital to meet the shortfall was in line with the Sebi fiat.