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

headstrong007

----- Full-Time ----- Day-Trader
According to that report,

Many retail investors may not want to undergo the hassle of obtaining a net worth certificate.

Many may also be reluctant to reveal their net worth to Sebi. Hence, the imposition of restrictions may propel more retail investors to invest through mutual funds.

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So that is the Gormint's idea! I am telling it all from the start! :)

Mutual funds will die without liquidity. The impact cost will increase too for FII-FPI heavily.
The market will lose momentum without volume. No one wants to invest in a dead market. RIP mutual funds. :down:
 
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headstrong007

----- Full-Time ----- Day-Trader
If they remove small fishes from the sea then how can big ones survive whom will they feed on.. especially sharks.. it is like damaging the ecosystem :pp
Dumbheads don't understand that,
Mutual Funds are also feeding on small retail investors short-term greed!
 
I think the AMC's/ Fund Houses will increase their charges based on AUM on a monthly basis. This will impact the net returns and could lead to shift of cash from MF to Equities - not on intraday basis but on positional basis. In effect, the standard retail investor (not trader) will benefit max.

Looks like we are going back 50 yrs!!
 
I think the AMC's/ Fund Houses will increase their charges based on AUM on a monthly basis. This will impact the net returns and could lead to shift of cash from MF to Equities - not on intraday basis but on positional basis. In effect, the standard retail investor (not trader) will benefit max.

Looks like we are going back 50 yrs!!
SEBI is after AMCs to decrease their charges as the volumes have increased and the benefits of economies of scale must be shared with the investors....SEBI will make them reduce the charges benefitting the investors of mutual funds.As it is charges in direct funds are much less than regular funds and investors can opt for direct .

Smart_trade
 

headstrong007

----- Full-Time ----- Day-Trader
Ultimately the cash will shift from equity and mutual funds to Fixed Deposit Account! That may help NPA troubled Banks. That may be hidden criteria of Gormint, who knows!

But, by doing that, we are going back to the primitive age before 1875. :p
The Traders group eventually moved to Dalal Street in 1874 and became an official organization known as "The Native Share & Stock Brokers Association" in 1875.