SEBI's new move to cut retailers participation in F&O!

[Smart_trade]

If investors give evidence of liquid assets such as bonds,shares,bank deposits etc then based on this data his broker can determing the liquid networth.....no need for CA to certify.

IT Returns could be another indication. Investor can prepare his balance sheet himself and give evidence of various assets....not very difficult for brokers.

When I opened account with Interactive Brokers, they had minimum liquid networth critaria and when the evidence of the assets was furnished, they accepted and there was no need for CA certificate...something similar brokers need to do.

Smart_trade

 

[vikas2131]

If investors give evidence of liquid assets such as bonds,shares,bank deposits etc then based on this data his broker can determing the liquid networth.....no need for CA to certify.

IT Returns could be another indication. Investor can prepare his balance sheet himself and give evidence of various assets....not very difficult for brokers.

When I opened account with Interactive Brokers, they had minimum liquid networth critaria and when the evidence of the assets was furnished, they accepted and there was no need for CA certificate...something similar brokers need to do.

Smart_trade

Basically traders will borrow money from their relatives to show it in their bank accounts.

 

[Smart_trade]

Basically traders will borrow money from their relatives to show it in their bank accounts.

They can ask for last 6 months accounts statement and any loan from relatives will not be considered.

ST

 

[cinderblock]

https://www.bloombergquint.com/mark...lity-norms-who-will-certify-investor-networth

This is funny!

Protecting trader / investor interest is hard work.

The question is who wants to do the hard work and also be responsible if something goes wrong. There is really no upside to taking on the responsibility.

Who's going to raise their hands?

 

[vikas2131]

This is funny!

Protecting trader / investor interest is hard work.

The question is who wants to do the hard work and also be responsible if something goes wrong. There is really no upside to taking on the responsibility.

Who's going to raise their hands?

will be forced on brokers and then they will find loophole into this to conduct their business..

 

[Novice30]

https://www.bloombergquint.com/mark...lity-norms-who-will-certify-investor-networth

So, as per the article, it means that alone income and alone networth won't do. SEBI wants people to give networth which also clearly specifies your income and accordingly take exposure in CASH + F&O.

SEBI is adamant that brokers take responsibility of the entire exercise which they are not ready for.

 

[vikas2131]

So, as per the article, it means that alone income and alone networth won't do. SEBI wants people to give networth which also clearly specifies your income and accordingly take exposure in CASH + F&O.

SEBI is adamant that brokers take responsibility of the entire exercise which they are not ready for.

that would be hard to implement .. what about the people who have money from their parents..

 

[Novice30]

that would be hard to implement .. what about the people who have money from their parents..

I agree, will be difficult to implement. But the article clearly says SEBI wants income to be included in networth calculation. Not sure how will they arrive at the final formula.

 

[vikas2131]

I agree, will be difficult to implement. But the article clearly says SEBI wants income to be included in networth calculation. Not sure how will they arrive at the final formula.

People could always have money that could have been gifted to them... this is getting more absurd day by day.

 

[Novice30]

People could always have money that could have been gifted to them... this is getting more absurd day by day.

So basically, SEBI does not want you to blow up your money even if you have received it from family.

If you are a good trader then you must surely be in profit which will be your income.

If you are not a good trader then SEBI wants you to move to safer havens like FDs and mutual funds.

I appreciate the intent of SEBI but at the same time, my only request is that atleast buying of index options should be allowed for retail, atleast one or two lots if not more. Good traders will make money and move forward.