Sebi directs exchanges to implement a framework to monitor margins

The move is likely to have a wider impact on volumes in the futures & options (F&O) segment, in which leveraged intra-day trades had been a common practice

The Securities and Exchange Board of India (Sebi) has refused to tweak its new regulations on margin requirements, and has also directed exchanges to implement a framework to monitor margins maintained by clients for intra-day trades, in both the derivatives as well as cash segments

It has given the bourses a month for implementation of the new monitoring mechanism. According to two people familiar with the development, the Association of National Exchanges Members of India, the Bombay Stock Exchange Brokers’ Forum (both representing brokers),  along with exchange officials. met Sebi on Wednesday. 

However, the regulator made it clear that margin requirements would