Sebi Proposes Major Overhaul of Exchange Norms, Higher Net-Worth for Margin Trading Brokers

• Sebi proposes comprehensive overhaul of exchange regulations to streamline rules and improve ease of doing business.
• Minimum net-worth requirement for margin trading facility (MTF) brokers to increase from Rs 3 crore to Rs 5 crore or more.
• Stock exchanges to gain authority to adjust net-worth criteria periodically without prior regulatory consent.
• Proposed changes include aligning deadlines for net-worth certificate submissions with financial result declarations.
• Sebi aims to consolidate commodity and equity derivatives provisions, simplify compliance, and remove outdated market-making rules.

Why It Matters: Sebi's sweeping reforms aim to modernize exchange regulations, enhance broker capitalisation, and simplify market operations.