Comment on Basics on Options Shorting/Writing
Kunal, firstly what brokers block is basically what exchanges asks us to block. So yeah, as a trader for so many years, I have always wondered the conservative approach exchanges take in this regard. I guess you have checked our SPAN calculator, the values that this return for various strategies are as per the exchange. You can blame them for this, but on the flip side because of their conservative approach we have never had a default on NSE, even when we had probably the most horrid times in 2008.