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

[TraderRavi]

equity derivatives :

According to the Sebi press release issued on Wednesday, an individual investor can freely take exposure in the market up to a computed exposure based on their disclosed income as per Income Tax Return(ITR). For any further exposure the broker would be required to undertake rigorous due diligence.

so at present their target is retail in FNO and you can take position based on income shown in ITR only, no restriction for equity market . This means no ITR filed then no FNO trading.
Finance ministry have some data about people having big investment in shares but not much income in ITR , obviously black money, govt wants income tax to increase so they are after these people who dont show proper returns. equity investing can also be linked to ITR may be some time later.
..

 

[TraderGYO]

According to the Sebi press release issued on Wednesday, an individual investor can freely take exposure in the market up to a computed exposure based on their disclosed income as per Income Tax Return(ITR). For any further exposure the broker would be required to undertake rigorous due diligence.

I am banking on this exit clause for a long time now.

 

[TraderGYO]

But, in reality, if someone say student or any unemployed person has 1 lakh in trading account and 20 thousand outside (in the savings account) and no income presently. Then his/her net worth is 1 lakh 20 thousand only. As far as report 40-50% is the maximum exposure so its about 40,000 - 50000 exposure. But, the grey area is still how they will calculate exposure.

Yes, also how they calculate exposure for options buyers is also unclear.

 

[Riskyman]

Ok ok,I tell you a Joke-
Say I have 6 Cows,3 Sheeps and 2 Buffalo's,all of them produce very nice milk

The cost of 6 Cows is 18L,3 Sheeps worth 1.5L and 2 Buffalo's cost is 9L,so my networth is=18L+1.5L+9L=28.5L??

So will I be able to trade Stock Market,I have 8yrs trading experience too??

Gayi Bhains Pani mein

 

[TraderGYO]

equity derivatives :

According to the Sebi press release issued on Wednesday, an individual investor can freely take exposure in the market up to a computed exposure based on their disclosed income as per Income Tax Return(ITR). For any further exposure the broker would be required to undertake rigorous due diligence.

so at present their target is retail in FNO and you can take position based on income shown in ITR only, no restriction for equity market . This means no ITR filed then no FNO trading.

..

Actually according to 3.v of https://www.sebi.gov.in/media/press-releases/mar-2018/sebi-board-meeting_38473.html

"To reflect global initiatives on product suitability, a framework has been approved. Individual investors may freely take exposure in the market(cash and derivatives)upto a computed exposure based on their disclosed income as per their Income Tax Return(ITR) over a period of time. For exposure beyond the computed exposure, the intermediary would be required to undertake rigorous due diligence and take appropriate documentation from the investor. "
Both cash and derivatives are mentioned. It is very unfortunate.

 

[raindrops]

According to the Sebi press release issued on Wednesday, an individual investor can freely take exposure in the market up to a computed exposure based on their disclosed income as per Income Tax Return(ITR).

..

this will be struck down in 2 minutes in Court.

 

[TraderRavi]

Actually according to 3.v of https://www.sebi.gov.in/media/press-releases/mar-2018/sebi-board-meeting_38473.html

"To reflect global initiatives on product suitability, a framework has been approved. Individual investors may freely take exposure in the market(cash and derivatives)upto a computed exposure based on their disclosed income as per their Income Tax Return(ITR) over a period of time. For exposure beyond the computed exposure, the intermediary would be required to undertake rigorous due diligence and take appropriate documentation from the investor. "
Both cash and derivatives are mentioned. It is very unfortunate.

that meeting was in march. but at present only FNO restrictions in wednesday meeting as per news.

 

[TraderGYO]

that meeting was in march. but at present only FNO restrictions in wednesday meeting as per news.

As a equity trader that's all I can hope for.

 

[Vitthala]

@TraderGYO
say you have ITR worth 2.5L that means you can trade upto 1L i.e,40% of 2.5L
so see how much you could buy in just 1L without any leverage

and if you have 1L in your a/c then you'd get only 40,000rs to trade beyond that margin will be blocked,so how many shares you'll be buying in 40,000rs?

keep scalping madly whole day..thats it

 

[hitesh05]

As a equity trader that's all I can hope for.

Equity can we trade both long and short side in intraday with margin?