The review is being discussed by the Risk Management Review Committee (RMRC) of the Securities and Exchange Board of India (Sebi), said these people on the condition of anonymity. The committee is examining whether the current framework, built largely around the Standard Portfolio Analysis of Risk (SPAN) model introduced more than two decades ago, remains sufficient for modern market risks. SPAN is a risk-based margining system used by exchanges to calculate how much collateral or margin a trader must keep.
The discussions are preliminary and the committee is far from reaching a decision, the people said.
