Sebi proposes easing margin trading funding rules, tighter broker norms (opens original article in a new tab)

Sebi proposed reforms to the Margin Trading Facility framework, including higher net-worth requirements, allowing LLPs to offer margin trading, and streamlining collateral rules to improve efficiency and risk management.

• Sebi proposed changes to Margin Trading Facility (MTF) framework to improve operational efficiency and risk management
• Minimum net-worth requirement for MTF brokers increased from Rs 3 crore to Rs 5 crore
• LLPs permitted to offer margin trading, expanding eligibility beyond corporate brokers
• Collateral rules streamlined to allow uniform use of cash market collateral for MTF transactions