New Delhi, December 2 — The Delhi High Court on Wednesday sought a response from the Securities and Exchange Board of India (SEBI) and the Central government on a plea challenging a circular which mandates traders and investors to maintain minimum upfront margin in their accounts at all times during the day.
According to the plea, the circular will have a direct impact on the livelihood of many retail traders. There are apprehensions that if the volumes in derivatives deplete it will have an adverse effect on the corrections as there will be a huge drop in GST, STT and stamp duty revenues on derivatives trades, the plea said.
A bench of Justice Jayant Nath, after hearing the submission made by senior advocate Sandeep Sethi appearing for the petitioner, issued notice to the Central government and SEBI in the matter and slated it for further hearing on March 2.
The petition, filed by online marketing services provider Wisdom Capital, said that the petitioner is directly affected by any change brought into the existing system of the securities market. It said that the new rule will have a huge impact on the functioning of the stock market.
"It would be evident that the stock market was the only sector that has been able to function since the lockdown began in India on March 25, 2010. It was only the stock market which provided numerous opportunities to many people facing job losses to survive in these pandemic times," the plea said.