Sebi Proposes Major Overhaul of Stock Exchange Trading Framework

• Sebi aims to simplify rules, remove duplication, and reduce compliance burden for market participants.
• Proposals include merging overlapping provisions on trading, price bands, circuit breakers, and bulk/block deal disclosures into a single framework.
• The regulator suggests rationalizing Margin Trading Facility (MTF) norms, raising broker net worth requirements from Rs 3 crore to Rs 5 crore or higher.
• Client Code Modification rules will be liberalized, allowing PAN-linked multiple UCCs and easier obligation transfer for FPI family accounts.
• Outdated provisions like negotiated-deal exemptions and MOU-based trading are proposed for scrapping, with harmonized penalties and clarified short-selling rules.

Why It Matters: Sebi's comprehensive framework aims to streamline stock exchange operations, enhance transparency, and ease business.