New Delhi, June 18 -- The Securities and Exchange Board of India (Sebi) has proposed a revamp of rules governing the margin trading facility (MTF), including changes to the margin framework, to better regulate the rapidly growing segment.

In a consultation paper issued on Thursday, the market regulator recommended expanding the sources of funds available to brokers for offering margin trading. In addition to existing avenues such as bank loans, non-banking financial company (NBFC) borrowings and commercial papers, brokers may be allowed to raise money through non-convertible debentures (NCDs) and other debt instruments.

Sebi has also proposed raising the minimum net-worth requirement for brokers offering MTF from Rs.3 crore to Rs.5 cror...