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

[niftytaurus]

Hypothetical:
In case I have a taxable income of 15L and no assets or liabilities, won't I be not allowed F&O, atleast I can buy options worth 1 Lakh which is 1/15th my income & my risk is limited + I don't have any exposure based on leverage.

This is why I asked the question earlier, may be a CA would help clarify things.

Hi
Actually we are not clear yet ! we cant intrepret with present information, that how will they calculate exposure..
we have not yet known that will they take margin as exposure limit or How will they calculate exposure in options ? total contract value or just premium amount.
so Pradeep bro, we are still not clear about it..when actual notice/rule/circulation will come, we only then come to know
thanks

 

[headstrong007]

Someone please clarify if my doubt on Networth:
In the absence of any assets or liabilities, will a person's networth equal the income shown in tax return?
@canikhil please explain.

Below instruction for NSE clearing member will give you some idea.

Liquid Assets & Liquid Networth:-

Clearing members are required to provide liquid assets which adequately cover various margins and liquid networth requirements. A clearing member may deposit liquid assets in the form of cash, bank guarantees, fixed deposit receipts, approved securities, government securities and any other form of collateral as may be prescribed from time to time. The total liquid assets comprise of the cash component and the non cash component wherein the cash component shall be at least 50% of liquid assets.

https://www.nseindia.com/products/content/derivatives/curr_der/liquid_assets.htm

 

[TraderGYO]

hi
YES ! They can use Networth Certificate, If they have..You are right..it can be either IT return or Networth.
People who can show networth of 20-30 lacs rs are only allowed to trade F& O..less networth people can trade in cash markets..& who doesnt have Networth , can produce IT RETURN & Can trade in cash market & take exposure according to your ITR.
NOTHING IS CLEAR yet..but we all are just assuming as our knowledge..so nothing is sure yet..
Thanks

Thank you.

 

[Vitthala]

For those who are students and do not have a job yet, can they use net worth certificate to trade the equities market ? Earlier I thought it is going to be either net worth or ITRs.

how will you get NC if you have no job,no income,no ITR?

 

[marimuthu13]

how will you get NC if you have no job,no income,no ITR?

NO job , NO income and NO ITR? then why trade? NO TRADE too

 

[TraderGYO]

Below instruction for NSE clearing member will give you some idea.

Liquid Assets & Liquid Networth:-

Clearing members are required to provide liquid assets which adequately cover various margins and liquid networth requirements. A clearing member may deposit liquid assets in the form of cash, bank guarantees, fixed deposit receipts, approved securities, government securities and any other form of collateral as may be prescribed from time to time. The total liquid assets comprise of the cash component and the non cash component wherein the cash component shall be at least 50% of liquid assets.

https://www.nseindia.com/products/content/derivatives/curr_der/liquid_assets.htm

A net worth certificates will consider both liquid and illiquid property right? or the sebi will ask only 40%-50% of the liquid assets for exposure limit? What do you think @headstrong007 sir?

 

[niftytaurus]

how will you get NC if you have no job,no income,no ITR?

hi
He can get NET WORTH, if he gets some FD, Stocks, cash etc liquid assets from legacy/ancestor...But those assets will be in name of that student
thanks

 

[TraderGYO]

how will you get NC if you have no job,no income,no ITR?

Having ancestral property means having some form of net worth right?

 

[Hema123]

........................................

 

[TraderGYO]

hi
He can get NET WORTH, if he gets some FD, Stocks, cash etc liquid assets from legacy/ancestor...But those assets will be in name of that student
thanks

Thank you, apart from trading capital can not property received through inheritance be also considered as net worth ?