To escape penalisation, brokers would have to transfer the trades executed in the wrong client name or code to an Error Account, and not to some other client, and then liquidate the same.
However, brokers would face monetary penalties, being imposed from this month, if the trades are transferred to some other client by citing error in punching the name of the client, even if such an error is genuine.
The error being genuine would only save them from further regulatory actions. If brokers find that the errors have not happened at their end, they might pass on the liability to the investors, but the exchanges would collect the penalty from the brokers.
The genuine errors include those due to communication, punching or typing in cases of the original and modified client code or name being similar to each other. The changes made within relatives, as defined under the Companies Act, 1956, are also considered genuine errors.