Sebi Proposes Major Overhaul of Stock Exchange Trading Framework

• Sebi aims to simplify rules, reduce duplication, and ease compliance burden for market participants.
• Proposals include merging overlapping provisions for equity and commodity segments into a single framework.
• Key changes involve shifting bulk/block deal disclosures to client PAN level and rationalizing Margin Trading Facility (MTF) norms.
• Outdated provisions like negotiated-deal exemptions and specific market-making rules are proposed for scrapping.
• The framework also clarifies short-selling, securities lending, and harmonizes penalties between exchanges and clearing corporations.

Why It Matters: Sebi's proposed framework aims to streamline trading, enhance transparency, and reduce compliance for market participants.