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

[headstrong007]

just forgot to mention - guys lets sharpen our skills on PAKODA making instead of technical and fundamental analysis...

You need to show your income proof before selling pakoda soon.

Govt already declared Pakoda selling is a small business.
Now next step is, unemployed youth need to show income proof first, B4 they start any small business!

 

[Just-Trade]

Are the upcoming moves by Sebi targetting only to F&O index or will they be applicable to CDs also?

Just-Trade

 

[soft_trader]

Are the upcoming moves by Sebi targetting only to F&O index or will they be applicable to CDs also?

Just-Trade

F&O as of now.

 

[superman]

You guys are missing a major change : Physical settlement of stock in F&O in phased out manner ,, Can you imagine getting delivery of 1 lot of stocks ,, What kind of overnight risk we will have if we get physical delivery if we left it at expiry ,, How can we even square off before expiry as no one wants physical delivery ??!!

 

[headstrong007]

@superman it is clear SEBI don't want anyone to trade with stock future except hedging only!
But how any normal investor should hedge stocks also with 10lakh-25lakh lot size! How many investor buy single stocks of minimum 10 lakh! Now 25 lakh!!! Increasing lot size continuously is the big inconvenience for general investors for hedging purpose. Already, small investors can't hedge properly due to heavy lot size!

******
Just like a student, how a housewife trading with her pocket money would show income proof to SEBI?! By selling pakoda!

 

[maneverfix]

The government of Maharashtra have banned plastic in the name of environment protection, this is an industry which employees millions in unorganised sector of come.Now the plastic is being replaced by paper, just wondering how cutting down trees will protect environment.

 

[Just-Trade]

@superman it is clear SEBI don't want anyone to trade with stock future except hedging only!
But how any normal investor should hedge stocks also with 10lakh-25lakh lot size! How many investor buy single stocks of minimum 10 lakh! Now 25 lakh!!! Increasing lot size continuously is the big inconvenience for general investors for hedging purpose. Already, small investors can't hedge properly due to heavy lot size!

******
Just like a student, how a housewife trading with her pocket money would show income proof to SEBI?! By selling pakoda!

What if Sebi comes with such laws to Index F&O n retail traders r discouraged, then whether CDs trading would be allowed? And is CDs trading that much profitable?

Just-Trade

 

[sumantra]

SEBI is a "demon in disguise" for retail traders. Why they increased the lot sizes in F&O, if they really think of the retail traders ? Now they are craftily manoeuvering to collect higher taxes from retail traders. There is a necessity for a post in CHANGE.ORG to oppose these moves.

 

[headstrong007]

What if Sebi comes with such laws to Index F&O n retail traders r discouraged, then whether CDs trading would be allowed? And is CDs trading that much profitable?

Just-Trade

No, liquidity is the main problem in CDs.

 

[headstrong007]

SEBI is just doing the opposite to investors protection.
The main purpose of Stock F&O is hedging. But, SEBI is increasing lot size continuously which makes hedging hard day by day.

No one buys single stock for 25lakh! Even 10 lakh each of a single stock is rare for most common investors.
If someone bought 500 units of Reliance with 5 lakh can't properly hedge with Reliance Future with lot size 1000 units currently. Now if lot size increased to 2500 (25lakh contract value), then hedging 1000 units(10lakh) position also will be a nightmare! SEBI is clearly against the main purpose of derivative trading! Ideally, contract size should be 2 lakh or less for stock futures.