Mumbai, Dec 30 :     The J.R. Varma committee on ?badla,? appointed by the Securities and Exchange Board of India (Sebi) has recommended simultaneous introduction of weekly stock futures contracts alongside daily as well as weekly badla in the T+5 settlement period. The recommendation of the Varma panel is significant as it contradicts the L.C. Gupta committee on derivatives, which suggested the introduction of index futures in the initial stage. Briefing reporters here today, Varma said, ?Since weekly badla is close to a futures contract, the committee has suggested introduction of futures contract on individual stocks.? Varma added that a section of the panel felt that weekly badla be phased out in favour of stock futures. While daily badla allows carryforward of positions from one day to the next, the weekly badla allows carryforward of positions up to five days and close of positions through a reverse transaction on any day, thereby not locking in the position for a whole week. The panel has also recommended imposition of gross margins based on an individual client?s position, unlike in the earlier system where it was based on a broker?s net exposure. Further, reviewing the existing risk management systems, the committee proposed that the Rs 20-crore exposure limit per broker per settlement be replaced by broker-wise scrip-wise position limits, broker-wise aggregate position limits and scrip-wise market-wide position limits. Varma said a way to contain the aggregate long or short position on a scrip relative to its total market capitalisation should be found. He added that the committee felt that imposition of punitive margins was the best method to shut down the carryforward market when it reached alarming levels. The panel also suggested margins of 110 per cent when the short position in a particular scrip crosses six per cent of its market capitalisation and 100 per cent margins when the long position on a scrip crosses 12 per cent.