Capital market regulator Sebi is planning to replace the mandatory 20% upfront margin requirement for cash market trades with a lower risk-based requirement linked to clearing corporation margins, easing fund requirements for investors in highly liquid stocks. The plan is to introduce a risk-based margin trading framework that can lower margin requirements in highly liquid stocks. Sebi is learnt to have started a broader consultation process with all stakeholders and is expected to come up with a consultation paper shortly.