Is sub broker be liable for the loss incurred by the client in mcx or ncdex ?

ARK (Querist) 03 August 2012 This query is : Resolved
My friend was a sub broker of a very well reputated company of MCX. But Last 6 months back his clients made a debit of 5 lacs in the accounts and unable to pay the loss. Now the company has sent my friend(sub broker) notice to pay the loss incurred by the client in a week.If he wont pay the debit in 7 days from the day of letter receieved he will be additionally charged 18 % per annum interest. My friend is saying that its the duty of the Company's Risk management to take care of the debits and credits. Now what to do??? Please suggest. . .

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