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

[HEM]

SEBI probably wants to implement these restrictions as early as possible.It has taken up product suitability discussions in its 14 Sept board meeting and it probably anticipates stiff resistance to net worth etc and they have taken a early start by increasing margins which no investor body can challenge in any court as Stock Exchanges are within their rights to impose any margins and there cannot be any appeal against the same.So in case the net worth rules get delayed by getting challenged in courts,they have already achieved part of their goal of reducing the leverage by increasing the margins ....clever move by SEBI.As they have mentioned these margins can go up if the need be.Effect of This margins increase on stock futures and options will be big and it will drive stock derivatives out of reach of traders.

A trader trading 10 BNF contracts now will be able to trade 6 with the same margin....If net worth and profit restrictions sail through smoothly then this margin may be withdrawn.If restrictions and extra margins both stay in the market then liquidity will suffer big time.

Smart_trade

If sebi seriously want then I think there is a complete possibility that SEBI can implement his restrictions(Good or worst and rediculious)before 1 october 2018 .


HEM

 

[afin]

If sebi seriously want then I think there is a complete possibility that SEBI can implement his restrictions(Good or worst and rediculious)before 1 october 2018 .


HEM

Undoubtedly

 

[hitesh05]

If sebi seriously want then I think there is a complete possibility that SEBI can implement his restrictions(Good or worst and rediculious)before 1 october 2018 .


HEM

If they implement net worth then how can someone do it so soon? They should give at least 3 months time

 

[MaxX]

More margins for option sellers and futures traders from this month..

See https://www.nseindia.com/content/circulars/CMPT38768.pdf

I'm hoping premiums increase proportionately so that option sellers are not hurt too much!

 

[vikas2131]

More margins for option sellers and futures traders from this month..

See https://www.nseindia.com/content/circulars/CMPT38768.pdf

I'm hoping premiums increase proportionately so that option sellers are not hurt too much!

IF premium rises 40 -50 % for buyers, there could be steep decrease in buyers so either way it is going to hurt.

 

[hitesh05]

IF premium rises 40 -50 % for buyers, there could be steep decrease in buyers so either way it is going to hurt.

Will it affect cash market?

 

[HEM]

Hmm !!! Trading is tough in this case,spread may increase..turnover will drop !!! we will see lot more traders opening training schools

But if traders cannot trade, who will join these schools and waste money on trading schools ?

Da !!! Thats why many are conducting weekly classes/webinars etc.in hurry , !!! Anyway full picture of SEBI will be known in coming months

Even Madan has also started his Trading Workshops ...... Fees is 12000 Rs......

https://marketswithmadan.com/tag/workshop/


HEM

 

[Riskyman]

Chalo, good thing SEBI has not done anything to cash segment which means traders with smaller pockets can still trade long/short in margin segment.

 

[VJAY]

Even Madan has also started his Trading Workshops ...... Fees is 12000 Rs......

https://marketswithmadan.com/tag/workshop/


HEM

Can we also start hem bhai?

 

[pannet1]

why am getting a feeling that the number of posts / day in TJ had reduced substantially. Also overall, it means retail traders are becoming lesser and lesser

Does it have something to do with SEBI new regulations.