Brokers want SEBI to roll back new risk management framework for F&O

The Securities and Exchange Board of India’s (SEBI) recent move to revise the risk management framework by tweaking the margin requirements for equity derivatives segment is facing resistance with broker associations demanding a roll back or at least an indefinite postponement of the new norms that will come into effect from Monday.Brokers say that the proposed margining structure will only increase manifold the cost of trading in equity derivatives — also known as F&O, or futures and options, in industry parlance — without any real benefit in terms of reducing risk, which is the motive of the SEBI. The Association of National Exchanges Members of India (ANMI), which is the umbrella body of capital market brokers, has written to the SEBI highlighting the concerns and plans to take up the issue with the regulator on Monday.

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