Sebi is discussing a revamp of margins for hedged derivative trades, specifically a tenure-based slab structure for extreme loss margin (ELM) for calendar spreads, to improve efficiency and reduce losses for retail investors.

How this affects you

This proposed revamp aims to make hedged positions, such as calendar spreads, more capital-efficient and cheaper for investors by reducing combined margin requirements. The move could encourage more retail participants in derivatives through spreads, potentially reducing their financial losses.