Decoded: Why Sebi's new margin pledge norms have rattled brokerages

Most brokerages are rattled by market regulator Securities and Exchange Board of India’s (Sebi’s) new margin pledging norms. Business Standard tries to explain why Sebi introduced this new system and why it is worrying the broking community: 

What has triggered the move by Sebi?

Under the earlier system, as part of the account opening form, several brokers obtained a power of attorney (POA) from their clients to access their account. This was required to provide higher margins for trading. A POA allowed a broker to move client securities from their dematerialised (demat) account to a collateral account which could be