Brokers ask clients to cut leverage as selloff deepens

Mumbai: The selloff in mid-cap and small-cap stocks has intensified of late as brokers are asking clients to liquidate their leveraged bets in the space in the wake of the Securities and Exchange Board of India’s warning of froth in these shares. The recent crackdown on Dubai-based hawala operator Hari Shankar Tibrewala by the Enforcement Directorate (ED) for stock manipulation has also triggered panic among market operators, who are said to be cutting their positions, said brokers.