Jefferies Comments on SEBI Circular, Expects Market Tightening and Impact on Discount Brokers

Jefferies notes that SEBI’s circular aligns closely with the discussion paper and affects 35% of individual premiums.

The phased implementation over the next 3-6 months is expected to lead to a measured tightening of the market.

A key change from the earlier proposal is a reduced increase in expiry day margins to 2%.

The focus will now shift to how market participants behave after the implementation.

Discount brokers are likely to be the most affected, followed by exchanges like BSE.