Sebi may cut non-expiry day margins to boost longer-term derivatives trading

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• Subscribe now The Securities and Exchange Board of India (Sebi) is likely to rationalise margins on equity derivatives on non-expiry days to encourage big traders to place longer-term bets rather than focus solely on the expiration day, two people aware of the development told Mint.
• This move could deepen the derivatives markets, where most of the trading by large, high-frequency and proprietary traders as well as individual investors takes place on weekly option contracts' expiry.
• "The RMRC (Sebi’s risk management and review committee) is discussing a rationalisation of margins as the current ones can discourage long-term traders, especially on non expiry days," said one of the persons cited above.
• The second person said Sebi would seek feedback from market participants on these changes.