DErivatives questions

[musicjunkie]

Thanks rajeshrao for the input...i wanted to know what the rate i should use for my calculator?
(offtopic disussion)
Sorry for the intrusion of this offtopic question, is it allowed to use Other peoples money for my trading? i have a few friends who are fine with my risk curve and past performance, they have also accepted the probability issue. All i wanted to know if its legal for me to do this, i had asked this earlier but the answer was very vague. Ifi have to register my self as an investment advisor or anything else a link to an article would be much appreciated. Moreoevr if the above isnt possible what would be my other options?

MJ--

 

[rajeshrao1]

Thanks rajeshrao for the input...i wanted to know what the rate i should use for my calculator?
(offtopic disussion)
Sorry for the intrusion of this offtopic question, is it allowed to use Other peoples money for my trading? i have a few friends who are fine with my risk curve and past performance, they have also accepted the probability issue. All i wanted to know if its legal for me to do this, i had asked this earlier but the answer was very vague. Ifi have to register my self as an investment advisor or anything else a link to an article would be much appreciated. Moreoevr if the above isnt possible what would be my other options?

MJ--

Hi, if you want to legally manage other's money, then you have to register as a portfolio manager with SEBI. Plz read sebi regulations at sebi.gov.in.

Alternatively, you can let the clients manage their own money, and you would be acting as an Investment advisor for a fee. As of now, Investment advisors are not regulated, but SEBI has recently caled for formation of self-regulatory authority to check Investment Advisors
http://business-standard.com/common/storypage_c.php?leftnm=10&autono=279579

 

[uasish]

rajeshrao1,
Dont get disheartened by the regulation.One thing is absolutely illegal,that is you cant operate other people's a/c ,without registering as a PMgr,so your 1st job is getting a sub-franchise & registering those clients there,so now as a sub broker/franchise you can put buy/sell , absolutely legal.Maintain a register for each Buy/sell ,qty,price etc. get it signatured by those clients.
Your arrangement with those clients is outside the purview of SEBI
,for them you r just a Sub.After each payout send the a/c to your clients to get a counter chq,like wise your payout.

Cheers

Asish

 

[chander_rb]

very good reply buddy...btw i have the link to the article with put call parity...will post soon.

Thanks Avi.

Looking forward to your post.

Regards

arbeecee

 

[rajeshrao1]

rajeshrao1,
Dont get disheartened by the regulation.One thing is absolutely illegal,that is you cant operate other people's a/c ,without registering as a PMgr,so your 1st job is getting a sub-franchise & registering those clients there,so now as a sub broker/franchise you can put buy/sell , absolutely legal.Maintain a register for each Buy/sell ,qty,price etc. get it signatured by those clients.
Your arrangement with those clients is outside the purview of SEBI
,for them you r just a Sub.After each payout send the a/c to your clients to get a counter chq,like wise your payout.

Cheers

Asish

Hi, That looks OK-- every law can be circumvented. How about keeping the money and shares in clients own broking/dp account and you would be trading/investing on his behalf. No pooling of funds. Client pays you pre-agreed % as fees.
Anyway, I am not going to manage fund for anybody, just want to know how people are doing it.
Regards

 

[rajeshrao1]

OK, That looks illegal--but are people doing this?
How about investment clubs, is anybody doing that?

 

[J_D]

Hello,

Everymonth near the contract expiry period we hear the term rollover.. ie 30% rollover in Satyam or 20% rollover in Reliance etc...

What is the meaning of this ? How to do this rollover?

 

[uasish]

You have to close your position at last thursday alternatively exchange will sq off.So if you are bullish/bearish for next series also ; you open a fresh position in that month series & close this month's series.That means you Rolled over your position to next series.

 

[bvpraveen]

You have to close your position at last thursday alternatively exchange will sq off.So if you are bullish/bearish for next series also ; you open a fresh position in that month series & close this month's series.That means you Rolled over your position to next series.

Hi,

I've little knowledge in FNO. Just need some confirmations on my views:

1. I hope rollovers is only for futures, and that we have to notify the broker/exchange about rollovers, else it will get squared off automatically.

2. How about the brokerage? Do we need to pay brokerage for close and open or nil, in case of rollover.

3. Till what duration we can keep rolling on our position?

Thanks,
Praveen.

 

[uasish]

1) It is you yourself buying next series & closing this series,it can be in options also.(Time Decay is to be onsidered).If i dont ,then exchange will sq off .(That is the reason on last thursday's last half hr's avg price is taken as close price)
2) Like all transactions.
3) Till you are not tired.

NB : the last thursday the underlying price in cash mkt & it's derivative price is almost exact at closing.