Speaking to reporters here, Sebi chairman DR Mehta said that there was a need to rationalise the current margining system, with varying margins on scrips. The intention is to impose a flat margin, which will be the base. Then, additional volatility margins can be imposed on this flat rate depending on the scrip and its volatility.

At present, there are a number of margins on scrip, often difficult to keep track of. There are daily margins, special margins, volatility margins and additional volatility margins.

With more scrips going into compulsory demat mode, Sebi is also thinking in terms of reducing the notice period required for book closures. Under the current format, where a good number of scrips are still traded physically, some time (six weeks) is required as the notice period for book closures. Mehta said that the securities watchdog was also ready to implement the Malegam committee recommendations on disclosures and investor protection.

Earlier, Mehta addressed a seminar on investor grievances organised by BJP MP Kirit Somaiyya where he enumerated all the steps being taken by Sebi to safeguard investors' interest.

There is also a move by Sebi to capture short-term volatilities. The present structure of margining captures six-week volatility, which is felt to be a long time, especially in the current context where scrips' prices show wild swings. According to sources, the markets regulator might refine the system to take into account a three-week volatility in the initial instance and then reduce it further.

Mehta said that they were also ready to implement the Dhanuka committee recommendations, which had suggestions on streamlining the functioning of Sebi itself.