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

[okabira]

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.

may be they will say .. plant more trees.

but paper is biodegradble and plastic isnt

 

[niftytaurus]

Hi
I have been reading Sebi's previous decisions & latest decision ..Its completelly unfortunate to retail traders
Guys , there is tax benefit but a more important reason is "giving facility to rich & make them help to be more rich " how I will explain
There is a big size of medium class in India..They constitute the biggest part of savings..where they invest their money?
My father generation used to invest in FD & real estate & very little exposure to share market..Real estate was a good investment in their time due to low cost & safety of investment ( they used to invest in land & that time Lan maafia was not so influential)
But right now in my genaeration, what all options...options are many but how much are really protect my capital..every industry has so much corrupt lets take one by one..

Fixed Deposit- It was a safest instrument 10 -20 years back..but now, its giving just 6-7 % return ..with inflation , its a negative return, but still our parents to keep their money their...but its ok till 2-3 years back..but now see the condition of banks & govt new rule regarding deposits ( propesed but very bad..where we will give shares of banks in return of our FDs_) seeing the condition of banks..all banking system can be failed in coming times..our money is not safe in banks
2) real estate-- so costly for medium class but unhonest builder & so many cases like campa cola building , even real estate can be zero in no time
3) gold--no longer attractive , as this also can be turned bear


so now we medium class left STOCK MARKET...so money is turning to stock market..but we need to see its individual entities..

participants are
big DII & FII
retail traders..
THESE 2 PARTICIPANTS...IN 2008, many investors( not intraday traders or swing traders but pure investors burn their hand..& when retail know about f& o..THEY GET INTRESTED BECAUSE NOW THEY CAN ALSO BENEFIT FROM BEARISH MARKET..till then they are not much aware about it..they only buy & FII & DII sell & retails doomed everytime..
so now traders participate in all opportunities ..bearish & bullish..they trade in options & futures & participate in falling market..
My opinion is all mutual fund companies form a lobby & influence on finance ministry & Sebi to stop retail to participate..trust me GOVT motive is not to protect retail or increasing Tax income..increasing tax income is nothing compare to Bribe giving by All mutual fund lobby to influence decsions..this will not look like SCAM ..but mutual fund influence sebi decisions..in the time of no integrity & personal gains, Do you really think , Govt ONLY MOTIVE TO ATTRACT tax ..No , its not..
Imagine, how much money those mutual funds have..managers are earning good fees whethere we loss or gain..mutual fund has so much capital & income from our money..they can give bribe of 10000 times more than STT taxes...imagine the money all mutual funds have ..even 1000 crore of bribe is nothing for them collectively ..even each of mutual fund give a small contribution to make this lobby against retail investors..

so now questions is why are they lobbying to cut retail investors..simple! to gain more capital in their Mutual funds..how? thats also simple..
lets assume..a average retail investor trade with 1 lac rs capital in f& o...its not coming in mutual funds..think! if you have 1 lac rs surplus income ..you dont want to keep it in bank fds or mutual fund..you want to trade in f& o..now if you are restricted doing f& o trading?
what options do you have?
1)you invest it in deliviery stocks--there mutual fund will loot you by make falling market ..like 2008..they will sell & market will fall..even your strong fundamental shares will fall..you will lose..retail lose is their profit..
2) you will go & keep it in bank FDS--because you want to protect it at least though its not growing but capital is safe----there also big banks are giving loans to rich people without colletral ..all npa scams are coming out...bank becomes bankrupt & your deposits are gone--there also thyey are looting you
3) now what options have you left..mutual fund--there your money is bhagwaan bharosa ..if manager is good , its ok..but if they are not..you will loose your capital..as they have disclaimer: mutual funds are subjected to market risk..you just see your money is bleeding year by year..
4) now what options have you left..real estate..there also rich & powerful politicians make them so much inflated & bubble which has no value...but you still want to buy..not a problem..your hard earned money will go by buying some inflated flat from a currept buildre or politician who invested their black money there..but here you dont know on whom land they built...& your money can be zero in no time...you fight legal battle but no use..your money has gone..
so right now ..if they restrict retails traders...where medium class will put their money?
where will I put my money? thats a big question! think India think..its not about Increasing taxes ..its about helping big boys..& YOU KNOW WHO THEY ARE?
Thanks

 

[niftytaurus]

hi
Brokers are not protesting for retail investors ..they are protesting for themselves..as they dont want to take responsibility upon themselves upon themselves as it comes upon them if some RMS problem happens...
If Govt still give them responsibility , some brokers can make loop holes on their part. this can be good for retail investor..
someone is pointing, that if we open account with diffrent brokers..but Friends we attach our bank accounts & broker trading accounts with aadhar..any time govt autorities can check out transactions...its mandatory to link adahar with broker account..how can we escape govt scrutniy about our trading accounts..govt can see our trading transactions any time..
if govt leave that on brokers discreation , we may think about Some indian JUGGAD system & Brokers can charge high brokerage to give us fascility to take high exposure in F& O..lets hope
thanks

 

[niftytaurus]

hi
I have been thinking about some solutions when that rule comes..I dont know right now , what will be the "CALCULATED EXPOSURE"..SO clearity will be when rule comes
1) new traders or even students can Show ITR OF 2.5 LACS..& take "CALCULATED EXPOSURE " of that 2.5 lacs..
2) open trading account of all the members of family..mother, father, wife,brother ,sister etc..from 4 account you can get exposure of 10 lacs
3) bargain with your local broker to give you more exposure
4) take help of your rich nana,nani,dada,dadi who have high net worth ..Soon India will have largest number of senior citizen traders ..this only possible if your cousins are not in trading business..otherwise waha bhi bantwara hoga..10 lac ka exposure chotey ko dey, mujhey 20 lacs ka exposure akkhir bada hu main..ha ha ha...new great indian bantwara of exposure limit
5)If you are unmarried, & want to get married..IF want to get married..DONT ASK FOR DOWRY ...just ask--SASURJI, if you dont trade, aapki exposure limit de do bus..apney naam sey ek trading account de do..paise main khud dal loonga us account main..but chances are father-in-law even call off the marriage as coming to know that you are THE BIG GAMBLER OF BIG CASINO CALLED INDIAN STOCK MARKET ..Ask after marriage, chances are higher that you get exposure limit

Bhai logon, those all are legal ways..one illegal way is also there..but we are honest indians, we dont do illegal things...we just bend legal things..
on lighter note, I am thinking about establishing my start up of Dabba Trading , which I Think is very much demand after THIS SEBI GREAT RULE TO PROTECT RETAILERS...NA RAHEGA BAANS NA BAAJEGI BANSURI..NA ZINDA RAHEGA RETAIL TRADER & NA WO KAR PAYEGA TRADING ...COMPLETE PROTECTION OF RETAILERS..dekha hum kitna khyal kartey hai retail trader ka...humey banaya hi gaya hai retail trader ki hifazat key liye..
RETAIL TRADERS HAPPY BIRTHDAY! KEEP DIEING!

 

[niftytaurus]

Dear friends
will this rule implement on MCX also?..I am not clear..if its only for NSE...not a problem..we can trade CRUDE,NATURAL GAS, SONA CHANDI,
aur fir bhi paisey kam padey to, NCDEX hai naaa ..haldi,chana ,barley,wheat,pepper,coriander,sugar...etc etc..litrally everything..we are traders, we can trade everything...ha ha ha...SEBI DAL DAL MAIN PAAT PAAT..

 

[vikas2131]

https://www.thehindubusinessline.co...on-to-boost-tax-collection/article9786782.ece

 

[vikas2131]

i feel this is beginning of many steps that will come. I expect minimum account and maximum no of position limit to eventually come too and if that also fails then it is going to be some Nse certificate that will have to passed to be deal in derivatives

 

[headstrong007]

Yes, it's is just the beginning. But, NSE certificate is not a big issue, only a few multiple choice questions on a small syllabus, even dumb people can pass it.

 

[headstrong007]

The average monthly derivatives-to-cash-turnover ratio has BIG FLAWS. SEBI intentionally SKIPPED PREMIUM TURNOVER for options. They added up premium+stikes to calculate virtual turnover!
This ratio derivative:equity -> 15:1, 20:1 etc are virtual. It could be 200:1 one day. If someone buy-sell a weekly option or Rs 5, SEBI calculates turnover on whole Bank Nifty 25,000 to find such absurd ratio 15:1.

Actually derivative turnover has decreased in past few years, as people shifted to options. If we calculate real trading turnover using options premiums only and futures turnover, we will get the actual picture. As people are shifting to options quickly due to high STT, Govt is getting less taxes from F&O. So the F&O trader hunt started.

But if SEBI constantly tries to disturb the F&O traders in that way, then a large number of F&O trader from NSE will shift to MCX after Merger of Shares and Commodity Account (soon). And if we consider single account trading in Equity & Commodity, then our exposure is actually double.

 

[headstrong007]

Now I understand, the reason behind, the absurd turnover rule (premium+strikes) for option calculation for Tax purpose by Government!
It is there to complicate things, falsely inflated turnover and compulsory audit to scare F&O traders so that F&O traders don't trade in OPTIONS!

Now, SEBI has different plans to cut the future volumes by increasing lot size &or imposing maximum exposure limit. Bravo!! What a Plan from Government to destroy retail F&O participation in Equity!