As per SEBI Circular No. SEBI/HO/DMS/CIR/P/2017/15 dated February 23, 2017, the Stock Exchanges are directed to create a common database of defaulting clients accessible to Members across the Stock Exchanges.
Defaulting Clients as defined by SEBI is:
A client may be identified as defaulter if the client does not pay the award amount to the member/depository participant as directed in the IGRP/Arbitration /Appellate arbitration order and also does not appeal at the next level of redressal mechanism within the timelines prescribed by SEBI or file an application to court to set aside such order in accordance with Section 34 of the Arbitration and Conciliation Act, 1996 (in case of aggrieved by arbitration/ appellate award).
Accordingly, the Exchange had issued circular dated September 14, 2017, seeking information of defaulting clients as defined above from its Trading Members. Based on the information provided by the trading members of National Stock Exchange of India Ltd. and other Exchanges regarding the defaulting clients as defined above a common database across Exchanges have been made available.