SEBI seeks MTF overhaul: raises net worth 5Cr, allows LLPs
SEBI is planning a big update to how margin trading works in India, hoping to make things smoother and safer as more people jump into the market.
The main changes? SEBI has proposed raising the minimum net-worth requirement for brokers offering MTF to ₹5 crore from ₹3 crore, and SEBI has proposed allowing brokers operating as LLPs to offer margin trading services, expanding eligibility beyond corporate brokers.
SEBI proposes NCDs, uniform collateral
Brokers may soon have more funding options, like using non-convertible debentures (NCDs), not just bank loans or NBFC financing.
SEBI also wants all collateral currently accepted by clearing corporations in the cash market to be usable uniformly for margin trading transactions.
Plus, there will be a common Rights and Obligations document across exchanges, and if any funded stocks get suspended or reclassified, clients will have 30 days to rebalance.
SEBI is asking for public feedback before locking these changes in, so if you have got thoughts on what makes trading fairer or easier, now is your chance!