Brokers must aware SEBI the big difference between notional turnover and premium turnover in Option Contracts.
On that report, SEBI calculated turnover on the notional basis for Options only which is ridiculous.
For calculating Tounvoer in Derivative Segment using Notional Turnover is a completely wrong approach when for all practical purposes from calculating STT to all other taxes only the premium turnover is taken!
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Assume we bought and sold 75 Nifty 10400 calls at Rs 100.
Premium turnover : (75 x 100) + (75 x 100) = Rs 15000
Notional turnover : (75 x (10400 + 100)) + (75 x (10400 + 100) )= Rs 15.75 lakhs
SEBI using above Ridiculous Notional Turnover Method purposely to find ridiculous ratio like below.
It is high time Brokers and traders must protest about Notional Turnover calculation and force SEBI to calculate Turnover using premiums. I have written the point to my personal letter to SEBI, but I am only an individual investor. All brokers especially discount brokers must protest.
On that report, SEBI calculated turnover on the notional basis for Options only which is ridiculous.
For calculating Tounvoer in Derivative Segment using Notional Turnover is a completely wrong approach when for all practical purposes from calculating STT to all other taxes only the premium turnover is taken!
************
Assume we bought and sold 75 Nifty 10400 calls at Rs 100.
Premium turnover : (75 x 100) + (75 x 100) = Rs 15000
Notional turnover : (75 x (10400 + 100)) + (75 x (10400 + 100) )= Rs 15.75 lakhs
SEBI using above Ridiculous Notional Turnover Method purposely to find ridiculous ratio like below.
It is high time Brokers and traders must protest about Notional Turnover calculation and force SEBI to calculate Turnover using premiums. I have written the point to my personal letter to SEBI, but I am only an individual investor. All brokers especially discount brokers must protest.