SEBI proposes margin trading overhaul to expand collateral and funding
SEBI just dropped a proposal to shake up how margin trading works in India.
The goal? Make things safer and smoother as more people jump into the market.
They're looking to let brokers accept new types of collateral, including certain Early Pay-In sale credits, and allow fundraising through Non-Convertible Debentures, basically giving traders more flexibility.
SEBI proposes ₹5 cr MTF reforms
SEBI wants to raise the minimum net worth requirement for margin trading brokers from ₹3 crore to ₹5 crore, plus set a 5.5x cap on how much of their net worth they can use.
Limited liability partnerships could soon offer MTF services too.
There's also talk of a standard Rights and Obligations document across stock exchanges, aiming for clearer rules all around.
Public feedback is open until July 9, so if you've got thoughts, now's your chance!