Moneycontrol
HomeNewsBusinessSEBI-appointed SMAC may approve new margining system, share pledging mechanism next week
Trending Topics

SEBI-appointed SMAC may approve new margining system, share pledging mechanism next week

The SEBI-appointed Risk Management Review Committee (RMRC) in October had agreed on most recommendations of the sub-working group. This group had proposed lower margins for hedged positions and status-quo on unhedged derivative positions.

January 13, 2020 / 20:24 IST
Story continues below Advertisement

A SEBI-appointed Secondary Market Advisory Committee (SMAC) may approve two important proposals next week—a new margining system and a mechanism for pledging equity shares.

"Brokers now have a consensus on margin requirements, an issue where there were differences earlier,” a source familiar with the matter told Moneycontrol.

Story continues below Advertisement

“The risk management committee may approve the new margin structure, which is likely to be on par with those followed by stock exchanges in developed markets. After that, the SMAC will have to approve it,” the source said.

The SEBI-appointed Risk Management Review Committee (RMRC) in October had agreed on most recommendations of the sub-working group. This group had proposed lower margins for hedged positions and status-quo on unhedged derivative positions.