Key facts
- India's margining framework is under scrutiny.
- The exposure margin, in addition to SPAN, is a key point of contention.
- Global investors are reportedly being deterred by these rules.
- This is occurring despite record trading volumes in India's derivatives market.
India's derivatives market is experiencing record trading volumes, but concerns are mounting that the country's margining framework may be deterring international participation. The specific focus of the debate is the exposure margin, which is levied in addition to the Standard Portfolio Analysis of Risk (SPAN) margin. This additional margin requirement is seen as a potential barrier for global investors looking to engage with the Indian derivatives market, despite the high trading activity.
