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

[superman]

And those who are saying they will somehow satisfy the requirements : You guys will cry like anything due to dried liquidity. I am mainly worried about that ! Without liquidity there is no trading ; its gambling ! I cannot exit, I cannot get out with a stop loss, I cannot enter, What will be left for trading then ?>

 

[Vitthala]

You are right @superman

 

[headstrong007]

And those who are saying they will somehow satisfy the requirements : You guys will cry like anything due to dried liquidity. I am mainly worried about that ! Without liquidity there is no trading ; its gambling ! I cannot exit, I cannot get out with a stop loss, I cannot enter, What will be left for trading then ?>

Exactly similar things have happened in South Korea after the small retailers out of the market, finally many big traders quit due to the liquidity crisis, finally, trading volume dropped 60-70%.

 

[headstrong007]

According to some market expert,

The risk-taking ability cannot be linked to net worth alone. The risk appetite of each individual varies, so there is no need to control how much one should invest in equities.

The decision regarding how much a person can invest in equities, or in any other asset class, should be left to the investor. It would not be appropriate for the regulator to determine minimum or maximum thresholds for them.

 

[headstrong007]

Some more views:-

Ideally, advisers should be regulated and not the advice.
Regulation should state who can be an adviser.

You should regulate the process and not the outcome.

 

[timepass]

Maybe they want to dry the liquidity at present.

 

[Loss_Lover]

SEBI proposes to link investor’s net worth to equity exposure: 4 expert views - read more here.

Something is burning and the top ones are not happy somewhere. They are really after retail life. What is disturbing is that SEBI is not treating traders as adults? Clearly, the big boys want to kick away small traders.

 

[Smart_trade]

SEBI proposes to link investor’s net worth to equity exposure: 4 expert views - read more here.

Something is burning and the top ones are not happy somewhere. They are really after retail life. What is disturbing is that SEBI is not treating traders as adults? Clearly, the big boys want to kick away small traders.

All the four experts in the article quoted by you agree that there should be some restrictions put on trading in F & O. Few are saying that we may not restrict asset allocation when it comes to investing......but no one is saying that SEBI should treat traders as adults and allow uncontrolled exposure....for traders main issue is F & O exposure and not asset allocation in equities so all experts are saying that there should be restriction on
F & O exposure....this is in line with what most people think. So no one is against any restriction by SEBI.

Let us see what SEBI comes out with bur no restriction is not something which will find favour with even finance sector experts,

Smart_trade

 

[Smart_trade]

My worry is SEBI may say no F & O trading if one is not atleast filing Income Tax Returns...it is possible as Govt wants to increase taxpayers or atleast people filing IT returns. This will put all small traders out of the market and liquidity will take a beating.. Hope that does not come..
But I wont call it unreasonable restriction put by SEBI and Govt. Govt also is thinking of limiting exposure based on income.

So guys, in the remaining months trade well, make money and file your IT returns and pay your taxes. Anyone will find it difficult to accept that a guy who does not earn Rs 2,50,000 on gross level in a year but takes a single trade exposure of over 7.5 L to 10 L

ST

 

[timepass]

My worry is SEBI may say no F & O trading if one is not atleast filing Income Tax Returns...it is possible as Govt wants to increase taxpayers or atleast people filing IT returns. This will put all small traders out of the market and liquidity will take a beating.. Hope that does not come..
But I wont call it unreasonable restriction put by SEBI and Govt. Govt also is thinking of limiting exposure based on income.

So guys, in the remaining months trade well, make money and file your IT returns and pay your taxes. Anyone will find it difficult to accept that a guy who does not earn Rs 2,50,000 on gross level in a year but takes a single trade exposure of over 7.5 L to 10 L

ST

The trade value may be 10 lakhs, but the exposure is limited to 5-10 thousands. If SEBI wants to limit the leverage, ok. But it just does not sound right to now allow participation. The brokers already have RMS teams which square off your trades if your losses reach a certain %age of the account value.

Let the guidelines come out, then we will see if SEBI's bark is worse than its bite or not. I personally think that babysitting a trader smacks of government jackboots.