Securities
and Exchange Board of India (SEBI) decided to review the current framework of
margins.
The capital markets regulator set up a working group
It is headed by NSE Clearing Ltd.
Their aim to look into the issue and submit its recommendations to the
Secondary Market Advisory Committee.
The significance as lower cost of trading preferred to trade in Nifty contracts
on SGX at Singapore.
A recent study jointly conducted by Association of National Exchanges Members
of India (ANMI) and consultancy firm Ernst & Young (EY)
Insisted the fact that trading in derivatives in India costs more when
compared with most of the other leading markets
It is due to a variety of margins that are imposed on the traders.
It is disclosed that unlike other markets where higher event-based margins are
applied temporarily.
Indian levy a variety of margins during the normal course thereby pushing up
the overall cost of trading.
About SEBI
Founded: 12 April 1992
Sector: Securities market
Jurisdiction: India
Headquarters: Mumbai
SEBI sets up panel to review margins on derivatives
