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

[headstrong007]

I think SEBI is panicked for the coming evening trading from Ist oct and they must have gave approval on pressure from NSE ... this is new territory and they don't know how the risk systems will work ... so all this nonsense just being extra careful ..

Maybe they want to compensate the volume using the FII-FPI volumes in the night session!
Why Oct 2nd week? Probably they want to see the extra volume in the night for two weeks (from Oct 1st). After that, they will kick out small retail investors and traders.
Most of the retailers will be out of F&O segment soon. Without liquidity, FII-FPI will face huge impact cost for their high volume trades at night due to the liquidity crisis. Now I really doubt about the success of Night Session!

 

[headstrong007]

Hi guys.. will it be applicable to mcx futures also

YES.

 

[vikas2131]

Maybe they want to compensate the volume using the FII-FPI volumes in the night session!
Why Oct 2nd week? Probably they want to see the extra volume in the night for two weeks (from Oct 1st). After that, they will kick out small retail investors and traders.
Most of the retailers will be out of F&O segment soon. Without liquidity, FII-FPI will face huge impact cost for their high volume trades at night due to the liquidity crisis. Now I really doubt about the success of Night Session!

Forget night session...Even day session will become a problem .

 

[Vitthala]

Hi guys.. will it be applicable to mcx futures also

not yet,first they will settle NSE..they are planning to merge mcx
i never traded mcx,so i didnt ask him

 

[headstrong007]

7-8 lakhs net worth will needed to trade a single lot in options. where exactly will liquidity come from ?

Usually, in the stock market, net-worth mean liquid net worth. So gold, real estate, cars etc are out of that list.
Most of the small retail traders will be out of F&O section with such networth rule.

 

[bpr]

what you said was right

I deleted thinking too much assumption on my part...
But if you see this is the biggest change in the market in a long time - to introduce night derivative trading that to without any cash market.
I am 100% sure NSE would have never wanted to do that in the first place but is just forced by SGX episode.
Now after that it is all domino effect..
physical settlement, lot size increase and now this ...
nse and SEBI working in tandem ...they can be considers as one

Also sometime I also wonder if all this noise is to suppress the NSE collocation case and how SEBI trying to allow NSE to settle with money and get away easily.

 

[cloudTrader]

I have a friend who has some acquaintance running Foreign Exchange business. He said that all of a sudden some very strange queries have started coming to convert money into US dollars. I presume it might be something related to bypass rules and indulge in Forex Trading. Another ill-effect which may come up.

 

[vikas2131]

Usually, in the stock market, net-worth mean liquid net worth. So gold, real estate, cars etc are out of that list.
Most of the small retail traders will be out of F&O section with such networth rule.

Small ones are out and bigger ones positions will get limited so where exactly liquidity will come from ?

also discount brokers bushiness will wind up .

 

[headstrong007]

yes really ridiculous,but regulators think that retail traders making big losses and blame sebi/nse/govt
Remember that petitioner who lost 24L++ something trading option,his slides are being taken as a slideshow in NSE ki dekho,aise loss hota hai and to protect small retailers regulators taking this step

50L ka networth hi nahi rahega to trading kaise karege aur loss kaise hoga?

I expect something worst will happen.
What if some unemployed small trader does suicide due to depression that he has no alternate way to feed his family?

 

[vikas2131]

I have a friend who has some acquaintance running Foreign Exchange business. He said that all of a sudden some very strange queries have started coming to convert money into US dollars. I presume it might be something related to bypass rules and indulge in Forex Trading. Another ill-effect which may come up.

Rupee is devaluing .so some wanna get their money out to save it from further devaluation .