The date coincides with the day when the ban imposed on short sales will also be lifted. The committee which comprised representatives of Mumbai, Calcutta, Bangalore, Ludhiana and the National Stock Exchanges centered their discussions around three crucial aspects - safety of the market, containment of volatility and determining a trigger point for imposing margins and restoring equilibrium in the markets. The group has also decided to impose `graded margins' which would ensure that an exit point is available to a broker, and curb volatility in the markets.

"We have decided not to disturb the existing margin system, however additional margins will be imposed to check the volatility in the market," said L K Singhvi, senior executivedirector of Sebi. "The margin system will make it expensive to either build excessive positions or sell," said Singhvi.

Speaking about the graded margin system, Singhvi highlighted the cost factor which a broker (both bull and bear) will have to bear inorder to avail of the benefits of an exit point. "Trade with additional margin, the cost factor will enable us to ensure market safety," he explained. The committee is scheduled to meet again on June 30, to finalise the intricacies of the margin package.