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

[monkeybusiness]

https://www.bloombergquint.com/mark...ign-outflows-after-sebis-new-rules#gs.w=yMwhw

Shabby is becoming Sheikh Chilli.

 

[raindrops]

Got this email from Sharekhan today, haven't received it from any other broker yet. Thankfully haven't mentioned anything about margin correlation with net-worth/total income.

View attachment 28078

small traders account is below 50k and they are option buyers only. if the rules in the sk letter are followed then itr or networth has to be produced.
90% will not be able to show itr and it is a waste of 10k for networth ca. big hit to brokers iif this rule is striclty implemented.

 

[cinderblock]

Got this email from Sharekhan today, haven't received it from any other broker yet. Thankfully haven't mentioned anything about margin correlation with net-worth/total income.

What's changed? You have to send ANY ONE of these every year anyway.

 

[kingsmasher1]

What's changed? You have to send ANY ONE of these every year anyway.

https://www.sharekhan.com/services/notices/SebiNotice_lp.html
This is the link in that email, if nothing changed why are they asking now?

 

[cinderblock]

Is the networth certificate mandatory?

PS: Yeah, there's atleast some change.

 

[Riskyman]

There has hardly been any change in long term VIX while the futures lot size changed from 25 to 50 then 75 in the last 4 years.

Even the person in the video says according to their research VIX may increase about 1%. How much do you expect option premiums to increase for a percentage increase in VIX? Specifically, what is the range of option Vega?

If your reply was in response to my post...

Honestly, we are all assuming things here. Firstly, we do not know if liquidity will be impacted. Even If it does then by how much? There is no way to quantify all of these things now. What I was trying to say was .. should liquidity reduce significantly which in turn leads to wild price moves then option pricing pricing may be impacted. This should be more visible in stock options as compared to index options. Its just a thought! Im not saying it will happen

 

[Riskyman]

Got this email from Sharekhan today, haven't received it from any other broker yet. Thankfully haven't mentioned anything about margin correlation with net-worth/total income.

View attachment 28078

I Dont think there is any need to panic. Firstly, this may be a pre emptive move by share khan as there is no formal circular by SEBI yet.
Secondly, the mail clearly says they have to collect income proof only. There is no mention of any minimum networth or minimum bank balance etc. I am sure most of us can provide at least a bank statement.

Let SEBI come out with formal notification first. We can worry then.

 

[Riskyman]

Is the networth certificate mandatory?

PS: Yeah, there's atleast some change.

Where is it made mandatory please?

 

[cinderblock]

St

Where is it made mandatory please?

Still not mandatory but some changes made in other documents. Go through the link.

 

[Riskyman]

https://www.bloombergquint.com/mark...ign-outflows-after-sebis-new-rules#gs.w=yMwhw

I wont be surprised if our government imposes more restrictions on some of these foreign investments in Indian stock markets or even bans FII's from the stock markets altogether (Unlikely though).
India doesnt seem to need FII money in the stock markets anymore. We have seen our own MFs supporting the market for a long time now.
FIIs have a sizable chunk in some of our private banks which may not be a good thing after all. Indian banks should be controlled by Indians and not foreigners.