Mumbai, June 19 -- SEBI has proposed a review of the Margin Trading Facility (MTF) framework to strengthen risk management and improve operational efficiency for brokers amid rising margin-funded trading volumes.

The regulator has proposed increasing the minimum net-worth requirement for brokers offering MTF to Rs 5 crore from Rs 3 crore. It has also suggested allowing brokers structured as limited liability partnerships (LLPs) to offer the facility.

SEBI has proposed expanding funding avenues for brokers by permitting borrowing through non-convertible debentures (NCDs) and other debt instruments.

The regulator has also proposed revising exposure limits. Under the proposal, MTF exposure would not exceed borrowed funds and available net...