Everyone please sign this as soon as possible
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SEBI-appointed SMAC may approve new margining system, share pledging mechanism next week
The SEBI-appointed Risk Management Review Committee (RMRC) in October had agreed on most recommendations of the sub-working group. This group had proposed lower margins for hedged positions and status-quo on unhedged derivative positions.
A SEBI-appointed Secondary Market Advisory Committee (SMAC) may approve two important proposals next week—a new margining system and a mechanism for pledging equity shares.
"Brokers now have a consensus on margin requirements, an issue where there were differences earlier,” a source familiar with the matter told Moneycontrol.
“The risk management committee may approve the new margin structure, which is likely to be on par with those followed by stock exchanges in developed markets. After that, the SMAC will have to approve it,” the source said.
The SEBI-appointed Risk Management Review Committee (RMRC) in October had agreed on most recommendations of the sub-working group. This group had proposed lower margins for hedged positions and status-quo on unhedged derivative positions.
Have no problem with SEBI tightening leverage, infact it’s great move, As you said people take traders that are way beyond their capacity sometimes they hit big but most times they blow up, and that makes stock market (especially intraday) look place for gamblers.
This really is good news, I’ve small capital and been looking to get into options writing but current margin structure makes it impossible for me to get into it.
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