@Avi_Garg Let’s have a hypothetical market scenario, where there are only two traders, you and me. You are the competent and responsible trader and I am the incompetent and irresponsible trader.
I take 10 times leveraged position using my one lakh and you are on the opposite side of position. The position goes against me, but I am neither made responsible to replenish my MTM loss nor penalized to wake up from sleep and act responsibly.
At settlement, you are making say 3 lakh of profit (being the competent trader) and I am incurring a loss of same amount. I in no way would be able to honor my settlement obligation because I have just one lakh in my pocket. Who would you hold responsible to receive your hard earned profit; me, broker, exchange or SEBI? Remember, I have just one lakh.