SEBI probably wants to implement these restrictions as early as possible.It has taken up product suitability discussions in its 14 Sept board meeting and it probably anticipates stiff resistance to net worth etc and they have taken a early start by increasing margins which no investor body can challenge in any court as Stock Exchanges are within their rights to impose any margins and there cannot be any appeal against the same.So in case the net worth rules get delayed by getting challenged in courts,they have already achieved part of their goal of reducing the leverage by increasing the margins ....clever move by SEBI.As they have mentioned these margins can go up if the need be.Effect of This margins increase on stock futures and options will be big and it will drive stock derivatives out of reach of traders.
A trader trading 10 BNF contracts now will be able to trade 6 with the same margin....If net worth and profit restrictions sail through smoothly then this margin may be withdrawn.If restrictions and extra margins both stay in the market then liquidity will suffer big time.
Smart_trade
A trader trading 10 BNF contracts now will be able to trade 6 with the same margin....If net worth and profit restrictions sail through smoothly then this margin may be withdrawn.If restrictions and extra margins both stay in the market then liquidity will suffer big time.
Smart_trade
If sebi seriously want then I think there is a complete possibility that SEBI can implement his restrictions(Good or worst and rediculious)before 1 october 2018 .
HEM
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