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

[TraderGYO]

The main worry is SEBI said they want to implement physical settlement in 'phased manner'.
They are testing water(experimenting the actual good & bad effects) in the name of 'punishment' for the first phase of 46 stocks.
If they see some volume shift to cash market and increased STT collection due to physical settlement, then they will include more & more stocks slowly for physical settlement.

Based on their preconceived notion of a "speculator" and an "investor" , I tend to think that they will change the stock options style to American from European where option buyer will have the right to assign during any point the option is ITM.

 

[bpr]

Based on their preconceived notion of a "speculator" and an "investor" , I tend to think that they will change the stock options style to American from European where option buyer will have the right to assign during any point the option is ITM.

not happening ....that is going to be massive change ...

 

[Newbie Day-Trader]

not happening ....that is going to be massive change ...

Physical settlement is also a massive change, so never discount the stupidity of government bureaucrats.

 

[TraderGYO]

not happening ....that is going to be massive change ...

It is neither fear of market disruption due to massive changes nor the plights of retailers due to unfriendly policies , has ever kept the regulators in check. You should never assume it won't happen. If they want to prevent small retailers from selling options it is probably the best way to do it. Whether good or bad that's a separate debate.

 

[sanju005ind]

Based on their preconceived notion of a "speculator" and an "investor" , I tend to think that they will change the stock options style to American from European where option buyer will have the right to assign during any point the option is ITM.

Initially it was American Option and later it got changed to Europen.Don't remember the time probably 2007-8.

 

[TraderGYO]

Initially it was American Option and later it got changed to Europen.Don't remember the time probably 2007-8.

http://www.business-standard.com/ar...-stock-options-from-today-111010300043_1.html
I just want to add I will not like the change to occur again but cannot also rule out it's possibility.

 

[rivi]

Hope everyone has came to know about this new circular by SEBI regarding Extension of Trading Hours.

Direct Link-

https://www.sebi.gov.in/legal/circulars/may-2018/trading-hours-on-stock-exchanges_38849.html

What are the Pros and Cons of this move by SEBI?

Please Share your views TJians.

 

[rivi]

Also,read this thread by @headstrong007 ji-

SEBI's new move to cut retailers participation in F&O-
http://www.traderji.com/community/t...to-cut-retailers-participation-in-f-o.106175/

 

[chintan786]

First of All it comes into effect from 1st Oct. 2018 when by the time Sgx Nifty stop around and The time has come to give Indian Govt. what they want. Just Stop trading at all. now a days there is some Tantrum on weekly basis.
1. Some ppl making money by writing options, lets Increase the Margin then.
2. Ok, Still making money by means of Bank Nifty Weeklies. Let's kill that as well.
3. Apr-2018 belongs to Clients as they have longs now lets f*ck them with timings this time.
4. I am hundred % sure, once people stop complaining abt timings, they came up with something new out of the box.

Why Just stop Trading in Equities at all. Just give them wht they want and when Liquidity Dries up, then they came back to there senses.

 

[rivi]

I always avoided trading MCX because of its long tiring duration.Now,MCX=EQ=F&O for me.

Newbies,struggling traders will give up trading sooner or later.