Mumbai, April 24 -- The Securities and Exchange Board of India (SEBI) has proposed a series of changes to the framework governing the handling of clients' unpaid securities by trading members and clearing members, aimed at improving ease of doing business while strengthening investor protection.

In a draft circular released on Friday for public comments, among the key proposals, SEBI has suggested providing flexibility to trading members to define a shorter funding period than the current five trading days for clients to meet payment obligations. This aims to remove misconceptions among clients regarding timelines.

It stated "it is proposed to modify the concerned provision to specifically mention that a trading member may, at its discr...