Sebi weighs lower margins for longer-term derivatives as F&O losses stay high: Tuhin Kanta Pandey
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Key takeaway
SEBI is considering lowering margin requirements for longer-term derivatives to boost market liquidity.
- Step 1 · The triggerSEBI considers lowering margin requirements for longer-term derivative contracts, reducing upfront collateral for participants
- Step 2 · Knock-onlower margin costs encourage higher participation and trading volumes in longer-dated derivatives, benefiting exchanges and brokers
- Step 3 · Reaches youincreased liquidity and access to hedging tools may improve risk management for SMEs with market exposures, but could also heighten volatility if retail participation rises without safeguards
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: Economic Times Markets
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