SEBI Proposes Uniform Trading Rules, Higher Margin Broker Net-Worth

India’s markets regulator, the Securities and Exchange Board of India (SEBI), on January 9 proposed a uniform set of trading disclosure requirements to standardize compliance across the country’s three stock exchanges and two commodity exchanges. The move aims to simplify reporting and improve transparency in trading activities.

SEBI also recommended raising the net-worth requirement for brokers offering margin trading from 30 million rupees to 50 million rupees ($554,927), aiming to strengthen the financial stability of participants in leveraged trading. Additionally, the regulator suggested extending liquidity enhancement rules, currently for equities, to commodity derivatives while ensuring they do not create artificial volumes or manipulate markets.

The proposals allow exchanges launching new segments to provide incentives of up to 25% of their net worth in the first five years, later shifting to 25% of profits for that product. This could benefit India’s National Commodity and Derivatives Exchange (NCDEX), which plans to launch equity offerings this year.

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