The Hindu Business Line : SEBI panel moots changes to margin trading norms

A SEBI committee has suggested that banks accept fixed deposits and bank guarantee as cash equivalent for initial margins, while using margin trading facility.

This forms part of a set of recommendations made by the secondary market advisory committee of the Securities and Exchange Board of India, to make margin-trading facility more attractive to share traders.

Under margin trading, buyers of securities pay a part of the cost and banks pay the balance. Securities are pledged with banks.

The committee has also suggested that securities of initial public offering, which met the conditions to be included in the derivatives segment, should be made available for margin trading.

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