New Delhi, July 23 -- The Securities and Exchange Board of India (Sebi) is considering a proposal to waive upfront margins on buy trades executed using proceeds from same-day stock sales under the early pay-in (EPI) mechanism, in a move that could improve liquidity and boost cash market turnover.

The proposal was discussed at a meeting of Sebi's risk management review committee (RMRC) last week. However, the talks are preliminary and no final decision has been taken yet, four people aware of the discussions told Mint.

"A proposal to reduce margins for buy trades made after a sell transaction with early pay-in has been discussed in Sebi's risk management review committee after thorough discussions in the Industry Standards Forum," the fi...