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

[Loss_Lover]

So, an unorganized trading strike will not work and an organized trading strike is a pipe-dream.

This is still a news. But thoroughly disturbing. These SEBI norms are unconstitutional and against the Citizen Rights.

If SEBI bring Certification programs and Brokers perform their due-diligence on the basis of their client's merit not net-worth for participation in derivatives market; I think that would be more retail friendly move. It will bridge knowledge gaps and make our markets more efficient.

But capping participation in the Cash or Derivative section on the basis of ITR/Net-Worth, by no means is a viable point of view, And framing it with losses incurred by retailers is unacceptable. It clearly implies the discriminating stupidity of our Regulator.

My monthly salary is Rs.5000/-, I can still go to a sabzi mandi and buy 100kg aloo. Who will stop me? The "Trade Union of the Mandi" stating I cannot buy 100kg aloo because my income is Rs.5000/-.

 

[TraderGYO]

This is still a news. But thoroughly disturbing. These SEBI norms are unconstitutional and against the Citizen Rights.

If SEBI bring Certification programs and Brokers perform their due-diligence on the basis of their client's merit not net-worth for participation in derivatives market; I think that would be more retail friendly move. It will bridge knowledge gaps and make our markets more efficient.

But capping participation in the Cash or Derivative section on the basis of ITR/Net-Worth, by no means is a viable point of view, And framing it with losses incurred by retailers is unacceptable. It clearly implies the discriminating stupidity of our Regulator.

My monthly salary is Rs.5000/-, I can still go to a sabzi mandi and buy 100kg aloo. Who will stop me? The "Trade Union of the Mandi" stating I cannot buy 100kg aloo because my income is Rs.5000/-.

I absolutely agree with you. Do protest. Like thousand other traders and I am with you. But We are so little that a trade strike will not work.

 

[headstrong007]

1. This article is written by the CEO of Value Research. There is no new add-on information available here. Just commentary.

2. Plan to cap investors' equity exposure in line with net-worth is already factored in into the worst possible scenarios.

3. The white paper is something to ponder about. Let's see what happens.

What else?

As per various reports published last week, SEBI is going to implement the equity exposure cap by the end of 2018. So the worst is in front of us. Is not it?
Presently The Ball is NOT in our Court. Let's wait for the implementation of the proposal, see how worst it is.
Then we will challenge it in Court, we are preparing for 'The Worst'.


********
As traders can easily use multiple brokers and it is very to hard to monitor multiple positions created from a different broker, SEBI is thinking min capital in the trading.
If such rule is implemented all discount broker will hurt bcoz u know most of the traders are trading with 1-2 lakh capital.
So, the worst is in front of you too, as the implementation is coming unless we can build up enough protest quickly.
This thread is the proof of how fast SEBI is implementing the proposals.

If u want to join the movement directly or indirectly(representative) you can join the group, WhatsApp Shivang Garg: 9560606861 to join the group.
The discount brokers must also build up the protest/express concern to SEBI in their own way.

Best Wishes for Fyers, you are only broker actively participating in this forums, in traders thread too.

 

[Tejas Khoday]

As per various reports published last week, SEBI is going to implement the equity exposure cap by the end of 2018. So the worst is in front of us. Is not it?
Presently The Ball is NOT in our Court. Let's wait for the implementation of the proposal, see how worst it is.
Then we will challenge it in Court, we are preparing for 'The Worst'.


********
As traders can easily use multiple brokers and it is very to hard to monitor multiple positions created from a different broker, SEBI is thinking min capital in the trading.
If such rule is implemented all discount broker will hurt bcoz u know most of the traders are trading with 1-2 lakh capital.
So, the worst is in front of you too, as the implementation is coming unless we can build up enough protest quickly.
This thread is the proof of how fast SEBI is implementing the proposals.

If u want to join the movement directly or indirectly(representative) you can join the group, WhatsApp Shivang Garg: 9560606861 to join the group.
The discount brokers must also build up the protest/express concern to SEBI in their own way.

Best Wishes for Fyers, you are only broker actively participating in this forums, in traders thread too.

Thanks!

1. Brokers are not united amongst each other.

2. Traders are not united either.

I will make an effort to pitch to the BSE Brokers Forum (BBF) of which we are a member. It is during such times that industry bodies must be most actively participate in traders' concerns. Let's see what happens. Will write again.

 

[headstrong007]

My monthly salary is Rs.5000/-, I can still go to a sabzi mandi and buy 100kg aloo. Who will stop me? The "Trade Union of the Mandi" stating I cannot buy 100kg aloo because my income is Rs.5000/-.

It is definitely against the Right to Equality - Rights of Citizens: Civil Rights

 

[headstrong007]

Thanks!

1. Brokers are not united amongst each other.

2. Traders are not united either.

I will make an effort to pitch to the BSE Brokers Forum (BBF) of which we are a member. It is during such times that industry bodies must be most actively participating in traders' concerns. Let's see what happens. Will write again.

Thank you very much.

Some serious traders are coming under that above-mentioned whats app group. Together we will teach SEBI a lesson in court that traders are not helpless.

Probably this is the only way to prevent them.
We will hire best advocates who are expert and won cases against NSE, SEBI.
We hope some more traders will join with us from this forum itself.

Let's hope for the Best.

 

[sumosanammain]

I think you all have missed a small line in the Sebi document that says that over and above the ITR computed limit, the intermediary has to do due diligence and allow more leverage. This leaves the onus on Brokers in my opinion.

I doubt that there is not too much to worry about.
The Broker can allow higher exposure based on his due diligence, meaning your previous trading history, if it shows an even ration of profits and losses, small stops, and routine losses, not extreme deep losses compared to profits, it should not be a problem.

And this stands for the normal trader. The ones close to brokers, will just get higher exposure enabled based on relations.
Just my 2 cents

 

[sridhga]

Point 4.4.8: "Some of these individual investors may not be conversant with the risks associated with derivatives,"

SEBI is assuming things. Any "investor" who is on-boarded and is not conversant with the risks associated will be knocked out within the first few days. So there is no place for experience?

I noticed that SEBI calls everybody as "Investors". So there is no place for traders? I do not think that people dealing in derivatives are investors. They are "TRADERS". Please note that they are betting on something moving in some direction for some period. I would also call them "speculative traders".

Atleast the language of the said document is vague and casual in some places.

You can go on and on. But who is going to listen?

Need to focus on increasing trading capital from now on.

 

[Smart_trade]

Thank you very much.

Some serious traders are coming under that above-mentioned whats app group. Together we will teach SEBI a lesson in court that traders are not helpless.

Probably this is the only way to prevent them.
We will hire best advocates who are expert and won cases against NSE, SEBI.
We hope some more traders will join with us from this forum itself.

Let's hope for the Best.

Right, you wont get any help from brokers..they will not do anything against SEBI......even BSE and NSE brokers forum are no use against SEBI and Govt...

Let the rules be defined and published, presently you have no cause of action for filing a petition against SEBI......a High Court or Supreme Court best legal experts dont come cheap, they charge upwards of Rs 1 Lakh per appearance so collect about Rs 25-30 L funds to fight the case. This amount is not big if traders nationwide participate in funds raising but organising them togather will be a task. Also prepare a back up team for supporting the paperwork preparing a plaint,sitting with lawyers,giving caselaw, remaining present at the court dates etc ,it all needs back up organisation. In SEBI tax case brokers gave a topmost lawyer of the country in 1992 who charged Rs 1 L per appearance and still they lost the case and worst still the court increased the tax incidence almost 5 times than what was originally proposed by SEBI...

Just posting so that you start the groundwork.....

Smart_trade

 

[hitesh05]

We want the move to remain status quo for years so that during that period traders can earn and get ready to face it, a good lawyer can do it.