SEBI plans margin checks for pre-open trading to prevent spoofing
SEBI is planning a new rule for pre-open trading sessions to stop market tricks like spoofing and keep things honest.
The idea is simple: before any order gets added, exchanges will check if there is enough money (margin) behind it.
This means only legit orders with real backing will count, and their original time stamps stay the same, making trades more trustworthy.
SEBI aims for uniform pre-open rules
Right now, different stock exchanges handle pre-open orders in their own ways, which can mess with order timing and priorities.
SEBI's move aims to set one clear process across all exchanges, making things more transparent and cutting down on shady practices.
Most stakeholders are on board so far, but the final rules are not set yet.
If this works out, SEBI might apply the same system to closing sessions too, so expect smoother trading all around.