Close to 150 stock brokers who are members of the National Stock Exchange and the Bombay Stock Exchange are likely to lose their trading rights because they have been unable to pay at least 50 per cent of their turnover tax dues by March 31, the deadline set by the market regulator, the Securities and Exchange Board of India.

At the Calcutta Stock Exchange, 125 brokers failed to pay their turnover tax dues on Monday. As a result, they face expulsion from the market. So at least 275 brokers nationwide face Sebi's axe.

Jhawar Mall Chaudhary, a CSE director who has been associated with the exchange for over 40 years, was busy drafting his resignation from the board as he could not rustle up his dues. Chaudhary, a former CSE president, said he would resign from the board.

CSE sources said over 250 members cleared their dues to the exchange as well as to the Sebi office in the city.

Of the 125 defaulters, 60 submitted applications to the CSE urging it to adjust the deposit money kept with the exchange against their dues.

They also submitted audited financial results with their applications to prove that they were in no position to pay their dues. A large number of brokers did not bother to turn up at the exchange.

Sebi had asked brokers, through a circular, to pay at least 50 per cent of their turnover tax due by March 31.

The brokers were also supposed to submit an undertaking to the regulator on the exact amount of liability pending and a tentative schedule of payment.

To make things worse for brokers, recent talks with senior finance ministry officials failed to yield any significant outcome.

A senior Sebi official said: "We are ready to listen to them, but the brokers are threatening to move court. What can we do?" Meanwhile, Sebi has already issued letters to various brokers seeking an inspection of their books.

According to stock exchange officials, more than 95 per cent of the BSE members have paid the required sum (50 per cent of their turnover tax dues) and have submitted the required undertaking to Sebi. However, the number at the NSE was not available.

Mohan Vijayan, chairman, BSE Brokers Forum said: "We have already asked our members to pay at least 50 per cent of their turnover tax dues by March 31."

Incidentally, the development will also have an impact on the derivatives market as a large number of NSE members also operate in the futures and options (F&O) segment.

They were allowed membership in the derivatives segment ahead of the Sebi order, which stipulated that membership on the F&O segment was contingent on the brokers clearing their turnover tax dues.