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

[TraderRavi]

a solid point .....

4.3.3 The remaining respondents (around 26%) did not express any concern over rising derivative to cash turnover; however, they have
stated that cost of trading in cash segment is comparatively high in India and it should be reduced to enhance participation in cash segment.

 

[afin]

Frankly speaking, I can't think anymore. Such nonsense is disturbing my day trading profession since last few days.
Fortunately, there is the Supreme Court, High Court. Lets SEBI comes with the rule.

Better we concentrate on trading in last 4-5 month of high leveraged trading now, to accumulate maximum profit.
Bad main, Jo bhi hoga dekha jayega.

***************
Kospi faced the problem after such regulation, finally they lifted such restriction. It is historically proved without enough derivative volume market become stagnant.
Here is the 2013 news what happened after such restriction to cut retailers participation in another market.

https://www.ft.com/content/649dd0da-4aaa-11e3-8c4c-00144feabdc0

agree but making a decent profit is not that easy anymore.

 

[headstrong007]

Frankly speaking, I don't know how many days we get such high leverage. I have decided to concentrate more on high leverage trading for last few months to accumulate maximum profit. We all must concentrate on trading now for next 4-5 month to increase our net worth to maximum amount.

I want to concentrate more on high leverage trading for last few months.

Yes, our profession is in danger, it is asking for more concentration and hard work now. It is time to use our skill to maximum potential.
I also must accumulate some extra profit by using extra effort now to fight the case in 2019.


**********

I remember Steve Jobes following speech after cancer detection. He was at his best when he knew his days are limited.
Here also our high leverage trading days are limited. I request to all members use your maximum potential for remaining days.

 

[afin]

Frankly speaking, don't know how many days we get such high leverage. I have decided to concentrate more on high leverage trading for last few months to accumulate maximum profit. We all must concentrate on trading now for next 4-5 month to increase our net worth to maximum amount.

I want to concentrate more on high leverage trading for last few months.

Yes, our profession is in danger, it is asking for more concentration and hard work now. It is time to use our skill to maximum potential.
I also must accumulate some extra profit by using extra effort now to fight the case in 2019.


**********

I remember Steve Jobes following speech after cancer detection. He was at his best when he knew his days are limited.
Here also our high leverage trading days are limited. I request to all members use your maximum potential for remaining days.

Good message! I am trying my best to pay off all my loans within that time frame because atleast then, given my 6 lakh rs annual salary, I should be able to break even and get an exposure of 2 lakh rs atleast! My situation sucks and I have no other alternative now than to go all in with highly leveraged trades.

 

[TraderRavi]

Proposal:
4.4.9 Considering that different jurisdictions have mandated specific product suitability norms for individual investors and it is important to maintain a balance with regard to providing opportunities and freedom to individual investors to express their views vis a vis risk associated with derivatives market, it is proposed that;
4.4.9.1 Individual investors may freely take exposure in the market (cash and derivatives) upto a computed exposure based on his disclosed income as per his ITR over a period of time. For any exposure beyond the computed exposure, the intermediary would be required to undertake rigorous due diligence and take appropriate documentation to satisfy the credit/exposure suitability of the individual investor.
4.4.9.2 Determination of the computed exposure and details of due diligence documents required shall be formulated in consultation with market participants.

 

[TraderRavi]

4.5.5 Further, market participants have also empathised that differentiating tax structure especially STT in cash and derivative market incentivises participants to trade in the derivatives as it is relatively cost effective to trade in derivatives. In this regard, the issue of STT on the cash market has been taken up with Government by SEBI.

 

[afin]

Proposal:
4.4.9 Considering that different jurisdictions have mandated specific product suitability norms for individual investors and it is important to maintain a balance with regard to providing opportunities and freedom to individual investors to express their views vis a vis risk associated with derivatives market, it is proposed that;
4.4.9.1 Individual investors may freely take exposure in the market (cash and derivatives) upto a computed exposure based on his disclosed income as per his ITR over a period of time. For any exposure beyond the computed exposure, the intermediary would be required to undertake rigorous due diligence and take appropriate documentation to satisfy the credit/exposure suitability of the individual investor.
4.4.9.2 Determination of the computed exposure and details of due diligence documents required shall be formulated in consultation with market participants.

does it mean that if I earn 6 lakhs, then only a set % of my salary is allowed for equities too??? Utterly ridiculuous

 

[TraderRavi]

4.6.2 The majority suggested that the restrictions on domestic institutional investors such as insurance companies and mutual funds regarding participation in derivatives market may be relaxed. Certain other participants suggested introduction of longer tenure contracts.

 

[nikhil_chinapa2]

I do agree... I have written to SEBI as a simple trader. You guys may even drop a note.

sebi@sebi.gov.in

 

[vikas2131]

does it mean that if I earn 6 lakhs, then only a set % of my salary is allowed for equities too??? Utterly ridiculuous

It is going to ITR and net worth both.. certain amount in account will be needed .. say like 5 lakhs at least