"The interim anomalies present in the margining system need to be thrashed out and the reference point used for the calculation of volatility margins also needs to be made more realistic," said senior executive director of Sebi, LK Singhvi.

The committee, which comprises representatives of 12 exchanges namely, Mumbai, Calcutta, Bangalore, Delhi and the National Stock Exchange, also discussed the issue of whether or not securities should be accepted as part of margins. In this regard it was felt that some sort of standardisation is required, considering the fact that although the overall margin limit is prescribed by Sebi, the composition is decided by the exchange.

According to a senior committeemember, the group also felt the need to bring in a margining system which would be at par with the margins in the derivatives segment.

"There is no need to change the existing system. However, some refinement can be certainly introduced," added Singhvi.

Although no decision was taken at the meeting, sources said the committee will meet once again in the last week of April before arriving at a concrete action plan.

The group on the code of ethics also met on Tuesday. According to senior Sebi officials, the group discussed certain issues relating to the delinking of the administration and the policy making powers, which can be only done by doing away with the anomalies in the bye-laws of the exchanges.