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

[Smart_trade]

There is something called product suitability. Just because markets are doing well, it does not mean that all should invest in these complicated products,” said Sebi chairman Ajay Tyagi.

This shows that SEBI is very serious about product suitability.

Smart_trade

 

[hitesh05]

Will you trade with similar enthusiasm with no leverage or minimum leverage or limited maximum exposure/leverage based on 40% of your last 3 years return?

They will try their best to prevent you from trading. They, want your money for the mutual fund and SIP only.

I am here for trading for a living, I think nobody will invest in mutual fund who is here for trading

 

[Swift.trader]

https://www.moneycontrol.com/news/b...etail-participation-in-fo-market-2485375.html

"The finance ministry wants the capital and commodities markets regulator, SEBI, to implement measures that boost growth of cash equity market, sources told Moneycontrol.
The equity derivatives market has been growing rapidly in the recent years and the ministry is not comfortable with its disproportionate growth vis-à-vis the cash market."

May be this is more about Finance ministry than SEBI.

 

[afin]

1)attach networth to trade F&O
2)attach ITR to trade Equity cash market
3)lot size of Relinfra Fut is 1300,it will be 2550
4)my broker will decide how much quantity I could buy based on my ITR to trade Equity Cash market.
Margin will be blocked beyond the limit.
5)Compulsive audit-if you lost trading file loss ITR,if you made money declare the income and pay the tax
else mini Scrutiny

point 5th,financial year hone ke baad
IT dept will send you notice based on your AIR irrespective of your turnover.
You traded the stock market,now you have to show it in ITR anyhow.
So far traders used to skip filling ITR if income was nominal

what if I had 3 yrs of losses but only this year I made a lot of profits? Obviously this will not be reflected in this year's ITR but in the next one right? Then how do I trade?

 

[venom555]

guys could you sign this petition against SEBI https://www.change.org/p/sebi-against-limiting-exposure-for-traders-in-financial-markets-freetotrade

 

[hitesh05]

I don't think anyone can trade peacefully until SEBI comes out with the rules

 

[Riskyman]

https://www.moneycontrol.com/news/b...etail-participation-in-fo-market-2485375.html

"The finance ministry wants the capital and commodities markets regulator, SEBI, to implement measures that boost growth of cash equity market, sources told Moneycontrol.
The equity derivatives market has been growing rapidly in the recent years and the ministry is not comfortable with its disproportionate growth vis-à-vis the cash market."

May be this is more about Finance ministry than SEBI.

Cash market bleeds you slowly whereas in derivatives market the bleeding is swift.

 

[afin]

Maybe they want to compensate the volume using the FII-FPI volumes in the night session!
Why Oct 2nd week? Probably they want to see the extra volume in the night for two weeks (from Oct 1st). After that, they will kick out small retail investors and traders.
Most of the retailers will be out of F&O segment soon. Without liquidity, FII-FPI will face huge impact cost for their high volume trades at night due to the liquidity crisis. Now I really doubt about the success of Night Session!

Lets hope the circular comes out. They must give time to retailers till Jan atleast for this move to be implemented.

 

[headstrong007]

https://www.moneycontrol.com/news/b...etail-participation-in-fo-market-2485375.html

"The finance ministry wants the capital and commodities markets regulator, SEBI, to implement measures that boost growth of cash equity market, sources told Moneycontrol.
The equity derivatives market has been growing rapidly in the recent years and the ministry is not comfortable with its disproportionate growth vis-à-vis the cash market."

Maybe this is more about Finance ministry than SEBI.

But, unfortunately, The Finance Ministry doesn't know the basics inside of the market, that it's the derivative market which creates
1. the essential momentum market required,
2. prevent the market bubble(from frequent profit booking at every swing-tops)
3. and when the market crash, the market finds the bottom with huge short covering only. It's the shorters who start booking profit first when no one wants to buy(catch the falling knife). After the initial bounce due to short covering of profit booking, the price spike happens(pin bars), then more reaction triggers huge short covering and fresh buying. That's the market dynamics.
It is historically proved without enough F&O volume the market just become stagnant. Anyone can search google to know more about the larger role of F&O segment.

The Growth of cash equity market will stop automatically without enough F&O volumes. If anyone don't believe it, just see the effect in South Korian Market KOSPI chart until the strict regulations are removed market was in hibernation mode for 4 and half years!

 

[niftytaurus]

hi
I have gone through all the posts & views from fellow traders..If we have gone through Vitthal's bro post, which is put light that whats is in SEBI'S MIND??..WE can get some idea..
a) they will increase lot size to double..so 1 lot approximate is 10 lacs -15 lacs..FOR EX. IF I show 15 lacs Rs networth, I can not buy single lot..I have to show atleast 20-30 lacs networth to trade a single lot..Means even rich trader who can show 1 crore of networth are not able to take more than 4-5 lots
b) traders who can not show NETWORTH more than 20 -30 lacs, can not trade F& O at all..
c) traders who can show networth below 20-30 lacs, can trade in CASH MARKET...but here also they can take exposure of 50% of networth..means if they show 20 lacs networth , they can take exposure of 10 lacs rs .I.e they show Networth & take 50 % exposure of that
d) traders who can not show networth certificate, they have to show ITR return of Previous years..ex. if they show rs 5 lacs ITR, they can take exposure of 2.5 lacs Rs ONLY in CASH market.
6)Traders who cannot produce Networth & ITR , can not trade at all in any market whether cash or F& O..Even if they have capital to trade

7) most of the retail traders will be out of the market after this ..This will be a serious LIquidity crunch after that..EVEN 1 CRORE net worth trader is allowed to trade 4-5 lots ..Even if he is allowed , how will he trade in that iliquid market.
8) Tv channel is just silent about it..because they dont want to spread this news...when SEBI officially announce , channel will create panic & there will be a severe panic & market will fell drastically ..so Sit on cash is a good idea...
9) This will be a very dramatic & unfortunate change in History of indian stock market..this will a very big move/bend on share market.
10) if same thing happended what happened in South Korea market, our markets will go in deep hybernation...this will be a sleeping market..
11) In that uncertain condition, its very difficult to trade in that situation..I CAN NOT CONCENTRATE on Trading RIGHT NOW...How can somebody trade for 1-2 monthes , when you know you are going from out of business in 1 & half month..
12) If this will not happen in cOMMODITY , & we hope that we have still 6 monthes in Commodity..so we can trade Crude in this time ...but yaha bhi aapkey sir par talwaar latak rahi hai, to tension key sath trade nahi kar saktey..
Its very depressin time for any trader...till then this dust settles down, we can trade in peace..
I am not tradin now a days, & waiting for that official circular ..& how will it effect everybody's trading..
Thanks