Sebi weighs lower margins for longer-term derivatives as F&O losses stay high: Tuhin Kanta Pandey
Sebi’s chairman Tuhin Kanta Pandey said the regulator is reviewing whether to lower margin requirements for longer‑term derivatives contracts. The proposal is part of a broader look at how margin rules can be calibrated to the risk profile of these instruments.
If margins are reduced, traders would need to post less collateral to hold positions, which could make longer‑dated contracts cheaper to trade and encourage deeper market participation. At the same time, SEBI is trying to curb the persistently high retail losses in futures‑and‑options and curb overly speculative short‑term trading, so any change will be balanced against risk management concerns.
Investors should keep an eye on SEBI’s official circulars in the coming weeks, any timeline for implementation, and how brokers adjust their margin calls. Subsequent data on trading volumes and retail loss trends will indicate whether the move is achieving its intended market‑deepening effect.
Key takeaways
- Category: Orders & Deals.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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