New Delhi, June 11 -- To stave off the onerous bank funding conditions set to kick in from 1 July, proprietary traders propose to urge Securities and Exchange Board of India (Sebi) to reclassify them as liquidity providers. Their aim is to be treated on a par with market makers, who enjoy better funding terms with banks. The matter is likely to be taken up by the Industry Standards Forum (ISF), formed under the aegis of Sebi, on Thursday. Mint takes a deep dive into the issue.

They are one of four broad categories of market participant, the others being clients-comprising retail and high-net-worth investors, corporates, and partnership firms-domestic institutional investors, and foreign portfolio investors.

Proprietary traders are broke...