New Delhi, May 25 -- India's market regulator is evaluating a broad revamp of the country's margin framework for both cash equities and derivatives trading as it looks to align risk management systems with today's market structure, according to three people aware of the development.

The review is being discussed by the Risk Management Review Committee (RMRC) of the Securities and Exchange Board of India (Sebi), said these people on the condition of anonymity. The committee is examining whether the current framework, built largely around the Standard Portfolio Analysis of Risk (SPAN) model introduced more than two decades ago, remains sufficient for modern market risks. SPAN is a risk-based margining system used by exchanges to calculate ...