Sebi raises sales margins to restrain market swings
Mumbai: Securities and Exchange Board of India (Sebi) has imposed additional deposit margins on net sales thereby helping the lowering of volatility thresholds in BSE and NSE. The BSE deposit margins have been increased to rates ranging from 15 per cent to 30 per cent from 5 to 20 per cent for all net outstanding sale positions. NSE has introduced a deposit margin of 10 per cent on all net sales outstanding at the end of the day.

Both exchanges also reduced the threshold limit for application of a volatility margin to 60 per cent from 80 per cent. This would mean that additional margins would have to be made on stocks, which fluctuated 60 per cent or more in price over a six-week period. As a result of the lower threshold at the Bombay Stock Exchange, the volatility margins of between 10 and 25 per cent will be applicable to 81 shares compared with the earlier 39 stocks.
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