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

[headstrong007]

Here is the effect of similar kind of restrictions of equity exposure in Korea's derivatives market.
SEBI's proposal would kill Indian Market too. Currently, 40-50% volumes are provided by small retail traders.

http://m.koreaherald.com/view.php?ud=20170119000602#cb

thanks to afin's #SEBIagainstRetailTrader

Specially discount brokers must also build protest ASWAP. Bcoz their main client base is small retail clients trading under 1 lakh capital. Such clients mostly trading with leverages.

If SEBI really wants to protect the small retail traders then the best way is to decrease lot size.

 

[MaxX]

If this is to safeguard small traders from taking positions then hopefully people with accounts over say 20 lakhs are excluded from such requirements..

 

[sanju005ind]

Let me first bring to your attention that in any field wether in sport or in business only the top 5%-10% is the success rate.
Not everybody becomes a CEO or nor everybody wins Gold medals.Why is it any diferent for trading.Trading is the only field where the lowest rung
player has a chance to compete with the Top 5-10 percenter. Please check the statistics for how many businesses are out there that survive after 5 years.
Why not the government or the regulatory bodies step in and tell the business that they are risking not only their capital but also risking the bank loans
there by creating the NPA mess.Why does not the govt tell the job seekers that they cannot become CEO's. Every citizen has a right to live and seek equal oppurtunity
granted by the constitution of our country.If retail investors are unable to understand the FnO then let them spend our tax money to create awareness and understanding.
Let this not be a game for the elite club. I have seen many people agreeing with SEBI.It is just a case of once a person is in they want to shut the door behind.
I am voicing this concern for the beginners and the next generation of youth who will find it difficult for making a trading career.

 

[headstrong007]

If this is to safeguard small traders from taking positions then hopefully people with accounts over say 20 lakhs are excluded from such requirements..

No hope, the rule is going to be the same for all except HNI. The proposal is only 40-50% it of the percentage of your net worth.
And the most disturbing thing is SEBI is calculating the turnover of option with prem+strike. So, options traders may not be safe.

 

[monkeybusiness]

No hope, the rule is going to be the same for all except HNI. The proposal is only 40-50% it of the percentage of your net worth.
And the most disturbing thing is SEBI is calculating the turnover of option with prem+strike. So, options traders may not be safe.

what is defination of HNI? any networth criteria or income criteria?

 

[pihu]

if someone has 1 Lakh in his account then can he purchase that much of shares for day trading?

same query i have sir @headstrong007 @Smart_trade dada
they planning to kill equity intraday scalping,speculation too?
we wont get 10 to 15X margin in cash market?
if i have 1L with broker means i could buy only 200 shares if stock price is 500rs?

 

[headstrong007]

what is defination of HNI? any networth criteria or income criteria?

High Net Worth Individuals (HNI) are defined as those having investible assets of USD 1 million => 7,02,15,000.00 Indian Rupee or more, excluding primary residence, collectibles, consumables, and consumer durables.

 

[pihu]

what is defination of HNI? any networth criteria or income criteria?

individuals with over Rs. 2 crore investible surplus are considered to be HNIs while those with investible wealth in the range of Rs. 25 lac - Rs. 2 crore are deemed as Emerging HNIs

 

[headstrong007]

same query i have sir @headstrong007 @Smart_trade dada
they planning to kill equity intraday scalping,speculation too?
we wont get 10 to 15X margin in cash market?
if i have 1L with broker means i could buy only 200 shares if stock price is 500rs?

No idea! But the motive is to kick out small retail investors and traders from the market so that there is no other option left except mutual funds.

 

[headstrong007]

individuals with over Rs. 2 crore investible surplus are considered to be HNIs while those with investible wealth in the range of Rs. 25 lac - Rs. 2 crore are deemed as Emerging HNIs

Do you have any valid link or document for 2 Cr? Probably it is true in the Indian context, but I did not get enough proof in the net. So, I got that USD 1 million from international HNI requirement.