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

[TraderRavi]

does it mean that if I earn 6 lakhs, then only a set % of my salary is allowed for equities too??? Utterly ridiculuous

not equities these proposals are for derivatives. based on income filed on last few years ITR a set % of position can be taken. So they may bar people in FNO who do not file ITR. but equity market is open for all.

 

[TraderRavi]

4.7.2 Majority market participants (80% respondents) stated that the contract size should not be increased and that rather it should be reduced. As regard position limits, the responses are fairly mixed.

 

[TraderRavi]

4.9.3 The issue of taxes especially lower STT in options raised by certain market participants has already been dealt above

 

[TraderRavi]

4.10.3 Market participants suggested to rationalise margin by allowing off-setting of margins across positions which materially reduce the risk. While certain other participants suggested to increase margin in the form of settlement margin (for those who have pay-in obligations), intra-day additional margin and also additional margins linked to leverage. Few participants suggested maintaining status quo on the risk management framework.

 

[TraderGYO]

not equities these proposals are for derivatives. based on income filed on last few years ITR a set % of position can be taken. So they may bar people in FNO who do not file ITR. but equity market is open for all.

I am confused about ITR and net worth. Do we need both or in absence of ITRs net worth will be sufficient.

 

[headstrong007]

not equities these proposals are for derivatives. based on income filed on last few years ITR a set % of position can be taken. So they may bar people in FNO who do not file ITR. but equity market is open for all.

Equity is also on the list. See the today's report. This is going to be far more dangerous.

According to news reports, markets regulator, Sebi wants to bring in rules to limit equity and derivatives investing only to investors whose net worth is above a certain limit. It’s not yet clear what range limit Sebi is considering.

https://economictimes.indiatimes.co...vestments-be-allowed/articleshow/65433299.cms

 

[TraderRavi]

I am confused about ITR and net worth. Do we need both or in absence of ITRs net worth will be sufficient.

as per proposals in this document only income shown in ITR is to be considered.

 

[TraderRavi]

Equity is also on the list. See the today's report. This is going to be far more dangerous.

According to news reports, markets regulator, Sebi wants to bring in rules to limit equity and derivatives investing only to investors whose net worth is above a certain limit. It’s not yet clear what range limit Sebi is considering.

https://economictimes.indiatimes.co...vestments-be-allowed/articleshow/65433299.cms

this report is about investing in equities not day trading.

 

[vikas2131]

as per proposals in this document only income shown in ITR is to be considered.

new benchmark seems to be networth.

 

[TraderGYO]

4.7.2 Majority market participants (80% respondents) stated that the contract size should not be increased and that rather it should be reduced. As regard position limits, the responses are fairly mixed.

""Our Comments
4.7.4 In many markets, mini derivatives contract, with lower lot sizes, exist alongside the primary derivative contracts. While this enables even smaller investors to participate, however, it causes a fragmentation of liquidity across products.""

(Source - https://www.sebi.gov.in/sebi_data/meetingfiles/apr-2018/1524050694434_1.pdf)

Why not then decrease the size of the derivative contracts for all? Let the institutions trade 10000 lot while we can trade 5. Ridicules arguments.