In a major relief for India’s bustling financial markets, SEBI has proposed transformative changes to trading regulations designed to cut down the cumbersome compliance burden on market intermediaries. The consultation paper, made public today, details reforms that could redefine operational efficiency.
Central to the initiative is the consolidation of margin reporting requirements. Brokers currently face a barrage of daily filings across exchanges; the new system proposes a centralized portal for all data, leveraging APIs for seamless integration. This tech-driven approach promises to reduce errors by 70%, per internal SEBI projections.
The proposal extends to position monitoring and settlement processes. For instance, intra-day square-off rules would be relaxed for select instruments, giving traders breathing room during volatile sessions. Commodity and currency segments, often overlooked, get equal attention with tailored simplifications.
Voices from the trading floor are optimistic. ‘Finally, regulations catching up with market growth,’ remarked a derivatives desk head at a national broker. With NSE and BSE handling over 40 crore orders daily, efficiency is paramount.
SEBI emphasizes risk mitigation: real-time alerts and AI-based anomaly detection will bolster oversight. The regulator also seeks views on phasing in changes to avoid disruptions.
Public consultation ends in four weeks, after which a board decision is expected. Successful implementation could lower transaction costs by 10-15%, attracting more foreign inflows. This proposal reflects SEBI’s evolving philosophy—smart regulation over excessive bureaucracy—in service of a vibrant capital market.