According to a section of the market participants, BSE's latest move is aimed at keeping speculators at bay. But this, in turn, could lead to a steep fall in volumes on the bourse.

As per the figures available with BSE, net carryforward positions which needed `vyaj badla' finance as on June 20 stood at Rs 527 crore, which was down 50 per cent when compared with the positions marked at the beginning of the month at Rs 1,142 crore.

"We fail to understand as to why BSE needs to impose these margins considering the fact that the long positions have already been under control," said a BSE broker, whose hopes are now pinned on Sebi's meeting on June 25 which is likely to see the regulator review the current market scenario following the curbs imposed on shortsellers.

The BSE on Monday imposed a daily margin of 15 per cent on purchase transactions inthe 150 specified group stocks, instead of the 10 per cent slapped earlier. The margins took effect on Tuesday.

Further, the exchange has also decided to slap a 15 per cent margin on all outstanding purchase transactions in the specified group stocks carried forward from the settlement ending June 26 to settlement beginning June 29. Currently, these carryforward purchase positions attract a margin of 10 per cent.

Market analysts seem to be focusing on the activities of institutional players who, according to them, will influence the direction of the market in the coming weeks in the wake of local speculators lacking the financial strength.

According to BSE sources, once Sebi takes a view on the margins imposed on short sales, the exchange is likely to impose uniform margins of 15 per cent on both sale and purchase positions.

"The current measure has been implemented with a view to restore balance in the market and curb the intra-day and intra-settlement volatility. However, once Sebi reviews thecurrent market scenario and decides to withdraw these curbs, we have decided to impose a uniform margin of 15 per cent on both sale and purchase positions," explained a senior BSE official.

A general consensus seems to be emerging in the market that the regulator must do away with unnecessary intervention in the functioning of the market forces.

"Market forces are far more superior to any regulator, which Sebi needs to understand and must allow the markets to reach the equilibrium level," explained a senior market analyst.