For option strategies like call spreads and iron condors where the risk is defined, it seems wasteful to block margin more than the maximum risk involved. Exchanges in other countries recognize strategies like these, why is NSE or SEBI hesitant to move to such margining? is it protecting the investors in some way or are they just being lazy (which I doubt).
Suggestion for brokers: At least brokers can remove exposure margins when they recognize defined risk (the maximum being just SPAN. For example, a Short strangle has risk on only one side, so collecting SPAN from both sides will be equal to collecting SPAN + Exposure of one side which should be enough to cover their risks. same for spreads, Iron condor, etc., if SPAN is enough to cover the maximum risk, why block more?