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

[soft_trader]

Sebi's F&O restrictions likely to boost dabba trading in Indian markets

Business Standard has put out an excellent article on how this draconian move by market regulator could boast illegal dabba trading.

Kindly give the link of that article.

http://www.business-standard.com/ar...trading-in-indian-markets-118040301399_1.html

 

[TraderGYO]

My thoughts
1. Government does not impose any qualification, monetary or otherwise for any other self-employed business
2. Discrimination between speculation in cash segment and derivatives is unfair
3. Government should not decide how money shall be made, speculation or investment is an individual choice.

There is one more thing I would like to add and I want other members opinion on this.
If ITR return is made mandatory by SEBI for F&O trading and also higher ITR means higher exposure in F&O according to SEBI then that means only individuals doing high salaried jobs or businesses will be able to trade in F&O. But my question is in India most high salaried jobs/businesses are during day time i.e. when the Market is open. How will they trade intraday F&O?
Is not it a paradox the the market regulators are trying to allow the individuals with high ITR returns in the F&O when in fact they will not have the time to trade?
What is your take @Tejas Khoday ?

 

[cinderblock]

--------------

 

[headstrong007]

My take is SEBI knows everything, they have access to all market/investors data.

They also know 90-95% are small traders trading with F&O. They just want to shift the F&O volume to CASH market as much as possible to collect some extra STT for Govt.
SEBI would not be benefited by that move, as their charges are same only Rs 15/Cr for all segments, Intraday cash or delivery or F&O all same. It's the only Govt who would get extra STT.

There is clear proof that Gormint is behind the ugly plan to collect some more TAX.

1. Same Gormint increased the service tax rate from 12.36% to 14% and then imposed Swachh Bharat Cess of 0.5% and Krishi Kalyan Cess of 0.5%. Finally, Service Tax is 18% with GST!
2. Gormint saw traders are shifting to option trading, most recently STT for selling options has been revised from 0.017% to 0.05% on the premium which is 300% of previous one!!
3. Then, most infamous 10% LTCG was introduced but STT is not abolished. This is called dual taxation.

Finally, the ugliest plan started to move F&O volumes to CASH market(to collect some extra STT) using SEBI in the name of Investors Protection!!!!

 

[soft_trader]

There is one more thing I would like to add and I want other members opinion on this.
If ITR return is made mandatory by SEBI for F&O trading and also higher ITR means higher exposure in F&O according to SEBI then that means only individuals doing high salaried jobs or businesses will be able to trade in F&O. But my question is in India most high salaried jobs/businesses are during day time i.e. when the Market is open. How will they trade intraday F&O?
Is not it a paradox the the market regulators are trying to allow the individuals with high ITR returns in the F&O when in fact they will not have the time to trade?
What is your take @Tejas Khoday ?

Yes as Mr Tejas pointed out earlier that sebi thinks higher ITR = higher knowledge about trading, though the income source maybe from somewhere else other than trading.

I am glad and very thankful to @Tejas Khoday for standing with us and interacting with us regarding this issue and understanding retail traders plight. Broking is just not about providing brokerage services and earning brokerage. I appreciate his stance of supporting retail traders here in TJ.

I sincerely wish Fyers would have had the numbers so that he could have directly represented our views to regulators. But not to worry, they will grow soon. My best wishes to Fyers.

 

[TraderGYO]

My take is SEBI knows everything, they have access to all market/investors data.

They also know 90-95% are small traders trading with F&O. They just want to shift the F&O volume to CASH market as much as possible to collect some extra STT for Govt.
SEBI would not be benefited by that move, as their charges are same only Rs 15/Cr for all segments, Intraday cash or delivery or F&O all same. It's the only Govt who would get extra STT.

There is clear proof that Gormint is behind the ugly plan to collect some more TAX.

1. Same Gormint increased the service tax rate from 12.36% to 14% and then imposed Swachh Bharat Cess of 0.5% and Krishi Kalyan Cess of 0.5%. Finally, Service Tax is 18% with GST!
2. Gormint saw traders are shifting to option trading, most recently STT for selling options has been revised from 0.017% to 0.05% on the premium which is 300% of previous one!!
3. Then, most infamous 10% LTCG was introduced but STT is not abolished. This is called dual taxation.

Finally, the ugliest plan started to move F&O volumes to CASH market(to collect some extra STT) using SEBI in the name of Investors Protection!!!!

It is deeply frustrating that the babus can knock us down and we can not even put up a fight.

 

[soft_trader]

My take is SEBI knows everything, they have access to all market/investors data.

They also know 90-95% are small traders trading with F&O. They just want to shift the F&O volume to CASH market as much as possible to collect some extra STT for Govt.
SEBI would not be benefited by that move, as their charges are same only Rs 15/Cr for all segments, Intraday cash or delivery or F&O all same. It's the only Govt who would get extra STT.

There is clear proof that Gormint is behind the ugly plan to collect some more TAX.

1. Same Gormint increased the service tax rate from 12.36% to 14% and then imposed Swachh Bharat Cess of 0.5% and Krishi Kalyan Cess of 0.5%. Finally, Service Tax is 18% with GST!
2. Gormint saw traders are shifting to option trading, most recently STT for selling options has been revised from 0.017% to 0.05% on the premium which is 300% of previous one!!
3. Then, most infamous 10% LTCG was introduced but STT is not abolished. This is called dual taxation.

Finally, the ugliest plan started to move F&O volumes to CASH market(to collect some extra STT) using SEBI in the name of Investors Protection!!!!

sebi knows everything. It is their deliberate attempt. They are nothing but puppet of gormint. Unfortunately like the common people of our country, educated bureaucrats also think that trading is nothing but gambling, and we are golden goose. Thus imposing whatever rules and taxes that they could think of.

 

[headstrong007]

SEBI must learn from E-mini Dow ($5) Futures.

The contract size of E-mini Dow is $5 x the Dow Jones Industrial Index. The minimum tick is 1 point, worth $5.

An electronically traded futures contract representing a portion of standard DJIA futures, E-mini Dow futures offer an accessible alternative to manage exposure to the U.S. stock market. Based on the Dow Jones Industrial Average, E-mini Dow futures offer exposure to the 30 U.S. blue-chip companies represented in the stock index.

http://www.cmegroup.com/trading/equity-index/us-index/e-mini-dow.html

************
Similar to Mini Nifty which was introduced with 10 lot size. E-mini Dow lot size is just 5.
Mini Bank Nifty with lot size 5 units is actually more Indian equivalent to E-mini Dow. But, now Sebi wants lot size 100 for Bank Nifty & 250 for Nifty!!!

 

[cloudTrader]

SEBI must learn from E-mini Dow ($5) Futures.

The contract size of E-mini Dow is $5 x the Dow Jones Industrial Index. The minimum tick is 1 point, worth $5.

An electronically traded futures contract representing a portion of standard DJIA futures, E-mini Dow futures offer an accessible alternative to manage exposure to the U.S. stock market. Based on the Dow Jones Industrial Average, E-mini Dow futures offer exposure to the 30 U.S. blue-chip companies represented in the stock index.

http://www.cmegroup.com/trading/equity-index/us-index/e-mini-dow.html

************
Similar to Mini Nifty which was introduced with 10 lot size. E-mini Dow lot size is just 5.
Mini Bank Nifty with lot size 5 units is actually more Indian equivalent to E-mini Dow. But, now Sebi wants lot size 100 for Bank Nifty & 250 for Nifty!!!

The concept of increasing the lot size is idiotic. Unfortunately I have to use this crude word but it is idiotic. Rather than increasing the volume for generating more tax related income , these babus are busy planning for shrinking the volumes. Bringing down the lot size will increase the volume positively but such foresightedness is elusive of these so called saviors of Retail Traders.

 

[soft_trader]

The concept of increasing the lot size is idiotic. Unfortunately I have to use this crude word but it is idiotic. Rather than increasing the volume for generating more tax related income , these babus are busy planning for shrinking the volumes. Bringing down the lot size will increase the volume positively but such foresightedness is elusive of these so called saviors of Retail Traders.

The calculation of equity to f&o volume ratio of 1:15 is flawed. Even if we accept this calculation and ratio then what is the problem? More liquidity is definately a good thing. Seems like gormint babus want to turn NSE BSE into DSE CSE of Bangladesh (no f&o)