India’s markets regulator SEBI has unveiled a bold new proposal aimed at simplifying trading regulations, a move that could significantly lighten the compliance load on brokers and investors alike. In a detailed consultation paper released today, SEBI outlined sweeping changes to streamline processes that have long been criticized for their complexity.
The proposal targets key areas like margin reporting, trade verification, and position limits. Currently, brokers must submit multiple daily reports on client margins, a time-consuming task prone to errors. SEBI’s plan introduces a unified reporting framework, reducing submissions from several to just one consolidated report. This isn’t just paperwork shuffling—it’s a direct response to industry feedback gathered over the past year.
Market participants have welcomed the initiative. ‘This will free up resources for better client service and risk management,’ said Anil Shah, CEO of a major brokerage firm. The changes come at a critical time, with trading volumes hitting record highs amid retail investor frenzy in derivatives.
Beyond margins, SEBI proposes relaxing intra-day position limits for certain segments, allowing traders more flexibility without compromising safety nets. Physical settlement norms for index derivatives are also under review, potentially expanding options for hedgers.
Critics, however, caution against rushing reforms. ‘Simplification must not dilute oversight,’ warned a former regulator. SEBI has invited public comments until next month, signaling a commitment to balanced implementation.
If approved, these rules could roll out by early next year, reshaping how India’s $5 trillion equity market operates. For everyday traders, it means less red tape and more focus on opportunities. SEBI’s push underscores a maturing market ready for efficiency in the digital age.
