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

[Newbie Day-Trader]

Here's the thing. If retail traders are contributing significant volumes to F&O, then restricting their participation could cause volumes to plummet significantly, & when that happens, even the medium & large players will cut back on their participation due to wider spreads & lower liquidity, leading to worse outcomes all around. SEBI is intent on taking Indian markets backwards, not forwards, just so that they can extort more STT money out of retail participants.

 

[TraderGYO]

I have a strong feeling that ITR based derivative exposure will pass and there will be two options given either submit ITRs to get higher exposure or submit Net Worth Certificate from a CA to get the calculated exposure. It will be upto the brokers if they want to follow ITRs or Net Worth for their clients. 70 years since independence India still under the License Raj. Sad state of affairs.

 

[sachin928111]

actually fixing lot size in f and o increases risk of retailers f and o suld be traded like shares minimum quantity sud be 1 share. this will enable retailers to take position as per his capacity. fixing of lot size means not letting those ppl trade who do not have that much money.only rich can participate. this is elitism not democratisation.

 

[TraderGYO]

actually fixing lot size in f and o increases risk of retailers f and o suld be traded like shares minimum quantity sud be 1 share. this will enable retailers to take position as per his capacity

If the minimum quantity of futures is set to 1 then what will be the difference between futures and equity? just 30 days of time limit?

 

[kainiteh]

Most of stop hunt and smart money based on retailer orders since they have access to large ladder/DOM than retailer...
As mentioned it trail and error effect.. on one concept that retailers find way to come back to trading...
And We Will do so... SEBI or any body ignorance toward retailer is clear now.. no forum for us to express ours thought to body or govt...
since I already spoke to my professional friend to open account and let me trade if this on full scale... in exchange of accepting auditor charge for both on me... I am paying all my bills from trading.... pushing us make me angry and also too cunning...
Atleast these body read this thread...
Believe me... even forex can’t run without retailers .. Trillion market accepts retailers.. SEBI will realise soon..
Thanks for this thread




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[kainiteh]

Cheers crude is move like SEBI.. both don’t know where to go and settle...


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[vikas2131]

Ok, I found a long clip including that comment about SEBI's hidden intention.
See from around 18min 30 sec.

Fortunately the other comment about Govt's intention(govt want to increase option volume) also inside the same clip near the end. There was more such discussion on that day about SEBI & Govt intention to shift retailers from Future to options. We may find other clips too in youtube.

whenever you get time , plz find it and post it

 

[headstrong007]

I have searched whole u tube, unfortunately, no one recorded the whole conversion. Let's see if a more video uploaded later.
I hope they discuss the topic again after the implementation, probably around oct 2018.
But, by that time may be more measure come to restrict retailers from trading Future like ITR linking and higher lot sizes.

 

[headstrong007]

In his budget for 2017-18, Finance Minister Arun Jaitley had proposed that the commodities and securities derivative markets would be integrated further by integrating the participants, brokers and operational frameworks.
Govt also behind the move of extending trading hours. But the Gormint's main goal is only to collect as much Tax as possible, nothing else.

Now, Tax-hungry Gormint is thinking linking ITR with trading and giving exposure according to that will also create more tax collection opportunities too.
Wrong thinking! Traders know how to find best opportunities, they will find alternative ways. Networth is another criteria to reduce the ill effect of such ITR linking.

 

[TraderGYO]

In his budget for 2017-18, Finance Minister Arun Jaitley had proposed that the commodities and securities derivative markets would be integrated further by integrating the participants, brokers and operational frameworks.
Govt also behind the move of extending trading hours. But the Gormint's main goal is only to collect as much Tax as possible, nothing else.

Now, Tax-hungry Gormint is thinking linking ITR with trading and giving exposure according to that will also create more tax collection opportunities too.
Wrong thinking! Traders know how to find best opportunities, they will find alternative ways. Networth is another criteria to reduce the ill effect of such ITR linking.

can you explain the last sentence please?