SEBI Proposes Major Overhaul to Simplify Stock Market Trading Framework

• SEBI aims to simplify regulations, eliminate duplication, and reduce compliance burden for market participants in stock markets and commodity derivatives exchanges.
• Proposals include merging provisions for trading, price bands, circuit breakers, bulk deals, call auction, liquidity schemes, margin trading, UCC, PAN, trading hours, and daily price limits, applicable to both equity and commodity segments.
• SEBI suggests separating settlement-specific provisions into a distinct 'master circular' to avoid regulatory duplication.
• To enhance transparency, SEBI proposes merging bulk and block deal disclosures and shifting information dissemination to client PAN level.
• Other suggestions include simplifying margin trading facility rules, increasing broker net worth to INR 5 crore, and updating UPI-based trading provisions.

Why It Matters: SEBI is streamlining stock market regulations to boost ease of doing business and transparency.