FPIs fret over peak margin norms, urge Sebi to defer implementation

Norms have a framework for verification of upfront margin collection in cash and derivatives segments. Peak margin is the reporting of client margins by trading members during the day

Foreign investors have reached out to the markets regulator, Securities and Exchange Board of India (Sebi), asking it to defer the implementation of the peak margin norms by at least three months and to reduce the penalty for not maintaining adequate margins.

The new norms prescribe a framework for verification of upfront margin collection in the cash and derivatives segments. Peak margin is the reporting of client margins by trading members (TMs) during the day based on peak theory. They come into force from December 1.

Asia Securities Industry & Financial Markets Association (Asifma), which represents many foreign investors, has