A beautiful mind of Sebi/Nse & margin requirements

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Hi @nithin ,

Have been curious if nse/sevi have given any clear idea of why the margin requirements are structured this way?

  1. There is an incredibly complex amount of math to determine the risk (span margin). Then, to charge almost 3times this amount (6sigma) seems hilarious or am I missing something?

  2. The margins for spreads: i can have a max risk of 200 rupees and still be asked for margin of almost 20,000 rupees (even on cash settled index)? There seems to be no relation between max loss of a spread to margin required.

Why such bizzare margin requirements in India?

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