Market regulator Sebi on Wednesday relaxed certain surveillance measures, including those pertaining to market-wide position limits, that were put in place eight months ago to curb volatility in the markets due to the coronavirus pandemic.

Citing the "changed market environment", the watchdog has decided to relax the measures with respect to the increased margin for non-F&O (Futures & Options) stocks and revised market-wide position limits.

Reacting to it, Rajesh Baheti, MD of Crosseas Capital Services said, “If SEBI’s idea was to stop the broker from misusing client money, how is this going to help that. Also, you are putting more money in the hands of the broker.”

Baheti said that there are rules that can be interpreted in multiple ways. “The margins that the exchange used to send us was the end-of-day margin file and that is how they were measuring what was collected against what was required to be collected. The concept of peak margin did not exist and since that number was not known to anybody, there was no way anybody could have budgeted for that,” he said.

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(Edited by : Abhishek Jha)