SEBI Consultation Paper Dated 18/06/2026 – Review of Margin Trading Facility (MTF) Framework 

The proposals include making eligible collateral uniform across cash and MTF transactions, permitting EPI sell credits as collateral under specified conditions, providing a 30 day rebalancing period when securities change category, introducing a uniform Rights and Obligations document, expanding permissible funding sources to include Non-Convertible Debentures (NCDs), revising broker exposure norms with ring-fencing of net worth, recognising passive breaches of client level exposure under specified conditions, increasing the minimum net worth requirement for brokers from  Rs 3 crore to Rs 5 crore, and retaining the higher maintenance margin of VaR + 5 ELM where cash collateral is used as pay-in due to wrong way risk. 

(Link: SEBI Consultation Paper Dated 18/06/2026)

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