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

[hitesh05]

Just curious to know can someone purchase stocks to trade with his own fund without any margin or for that also he has to submit net worth certificate ?

 

[TraderGYO]

I think SEBI has the much more detailed plan.
Do u read the above-posted link what happened in Korea in similar case? Just read. SEBI is just copying it.
They did something for option buyers also.
They increased the lot size for the Index option so much high, that most of the small retail trader does not able to trade it.
As a result, their derivative turnover dropped by 65% and the market lost momentum. Their market is DEAD. So, will be ours.

They already did it intentionally to INDIA VIX so that no one can trade it. It is out of small retailers hand and smart money don't take the opposite side. So the contract is practically useless with no trading volume.

So, a slow and steady encroachment of financial freedom is what they are after. Indeed "financial freedom" is something that honest Gov. servants will find lacking in their lives but only few will try to take it from others. Bottom feeders.

 

[jd1234]

Let's start chai and pakoda business on thela

 

[TraderGYO]

Just curious to know can someone purchase stocks to trade with his own fund without any margin or for that also he has to submit net worth certificate ?

If they implement the rule in the same form that was written in the news, then to do any trading first you have to submit a net worth certificate from a CA.

 

[hitesh05]

If they implement the rule in the same form that was written in the news, then to do any trading first you have to submit a net worth certificate from a CA.

 

[hitesh05]

As many of us are trading for a living they should give sufficient time before implement any new rule. And i hope this new crap rule is just a matter of discussion

 

[headstrong007]

@hitesh05 don't take it lightly. This thread is the historical prove what SEBI is doing.
SEBI is implementing one by one chain of actions to cut retailers participation after discussion very quickly.
See the proposal of physical settlement, then discussion phase then how quickly they apply it to 46 stocks.

I am trying to find out the proposal of this, they called it " product suitability" as per KOTAK report which is running a mutual fund business. They specifically mentioned after Korea or some other country(I don't remember it now) in India the Derivative Equity ratio is highest. But they intentionally calculated option turnover using premium+ strike. Now, when you are writing a far OTM strike of Rs 3-4 Rs they are calculating turnover on 11804 per unit. Or 29500 per unit.
All are intentional and baseless.

There is a famous saying,
Laaton ke bhoot baaton se nahi mante.

 

[headstrong007]

This is the first document reported where SEBI expressed the intention to cut retailers participation in F&O. Read it full.

https://www.sebi.gov.in/reports/rep...-equity-derivative-market-in-india_35295.html

***********

Then the following was published, March 2018 just after the budget.

Sebi plans to link retail investors’ exposure to derivatives with income
Sebi is considering linking retail investors’ exposure to derivatives with their income, a move aimed at preventing them from taking unreasonable positions in risky instruments


https://www.sebi.gov.in/reports/rep...-equity-derivative-market-in-india_35295.html

+++++++++++

Just after that, the final proposal come, they just used Kotak Panel so that no can blame it on SEBI.

I am still searching the document link, maybe already posted here before where 'product suitability' was mentioned.
Probably SEBI published that report in April 2018.

 

[cinderblock]

The proposal about networth based limits was first put forward in April 2008 --- 3 months after the circuit in Jan 2008.

 

[headstrong007]

I got the sebi twiter link.

https://twitter.com/SEBI_India

Everyone who has twitter must register a protest there.

SEBI proposal is applicable to Commodities also.