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Budget 2018: Brokers asked to collect higher margins to contain risks

There are concerns that the huge build-up of positions in equity derivatives could pose a systemic risk

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Ashley Coutinho
Ahead of Budget 2018, market regulator Securities and Exchange Board of India (Sebi) and stock exchanges are taking precautions, anticipating a significant run-up in the equity market. 

Sebi has asked brokers to collect higher margins from those with sizeable positions in futures and options. These include foreign institutions, wealthy investors and proprietary desks. 

There are concerns that the huge build-up of positions in equity derivatives could pose a systemic risk. Stock exchanges have asked brokers to mop up extra deposits from clients with significant exposure to derivatives. 

“In the joint meeting of exchanges and Sebi, it has been decided that

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First Published: Jan 30 2018 | 5:51 AM IST

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