New Delhi, Dec. 13 -- The Securities and Exchange Board of India (Sebi) is likely to rationalise margins on equity derivatives on non-expiry days to encourage big traders to place longer-term bets rather than focus solely on the expiration day, two people aware of the development told Mint.

This move could deepen the derivatives markets, where most of the trading by large, high-frequency and proprietary traders as well as individual investors takes place on weekly option contracts' expiry.

"The RMRC (Sebi's risk management and review committee) is discussing a rationalisation of margins as the current ones can discourage long-term traders, especially on non expiry days," said one of the persons cited above.

The second person said Sebi ...