New Delhi, Sept. 3 -- The Supreme Court has put an end to a long-standing legal fight over who bears responsibility when a stockbroker runs into losses, after running an unauthorized fixed-return scheme.

In a major ruling, the top court held that Professional Clearing Member (PCM) Edelweiss Custodial Services cannot be forced to pay back or restore client securities worth over Rs.900 crore. Overturning lower tribunal orders, the Supreme Court ruled that PCMs operated without direct client-level visibility under earlier regulatory rules and therefore cannot be held financially liable for defaults committed by independent stockbrokers.

The ruling came in Edelweiss Custodial Services Limited v. NSE Clearing Ltd. decided on 2 September 2026...