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

[soft_trader]

I have a super fundamental question with regard to the SEBI circular..... When is the projected timeline for the new rules to start? Any clue anybody?

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The circular came in force from the date of circular which was 11/4/2018. See at the end of page 3 of the circular.

New contracts for the stocks which will go out of f&o will not be introduced for july 2018 series but exchange will continue to supply strikes for the existing contracts upto june series. So by the end of the current series we will come to know which stocks are going out of f&o

 

[vikas2131]

The circular came in force from the date of circular which was 11/4/2018. See at the end of page 3 of the circular.

New contracts for the stocks which will go out of f&o will not be introduced for july 2018 series but exchange will continue to supply strikes for the existing contracts upto june series. So by the end of the current series we will come to know which stocks are going out of f&o

A lot of stocks, i feel, would be going out of F&O.


Analysts said most of the 209 stock futures and options would end up falling into physical settlement on expiry. Some market participants were critical of the regulator’s move, saying the introduction of physical settlement will only make equity derivatives more complex.

Read more at:
//economictimes.indiatimes.com/articleshow/63718225.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

[afin]

I have a super fundamental question with regard to the SEBI circular..... When is the projected timeline for the new rules to start? Any clue anybody?

Sent from my Redmi Note 4 using Tapatalk

The circular came in force from the date of circular which was 11/4/2018. See at the end of page 3 of the circular.

New contracts for the stocks which will go out of f&o will not be introduced for july 2018 series but exchange will continue to supply strikes for the existing contracts upto june series. So by the end of the current series we will come to know which stocks are going out of f&o

Thanks for the info. So does this mean that the physical settlement of contracts will also come into effect from the end of the current series?

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[soft_trader]

Thanks for the info. So does this mean that the physical settlement of contracts will also come into effect from the end of the current series?

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Most probably the answer is yes. There is a lack of clarity though.

 

[afin]

Thanks for the info. So does this mean that the physical settlement of contracts will also come into effect from the end of the current series?

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Most probably the answer is yes. There is a lack of clarity though.

Thanks for it. Effectively means I am out of Nifty and Bank Nifty trading business for good now.

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[wickedmaverick]

Thanks for the info. So does this mean that the physical settlement of contracts will also come into effect from the end of the current series?

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Most probably the answer is yes. There is a lack of clarity though.

Thanks for it. Effectively means I am out of Nifty and Bank Nifty trading business for good now.

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Physical settlement will only for stocks, right? Index F&O shouldn't be affected i think. Except may be the increase in the contract size.

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[soft_trader]

Physical settlement will only for stocks, right? Index F&O shouldn't be affected i think. Except may be the increase in the contract size.

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Yes. Physical settlement applicable only for stock derivatives. Index derivatives will be cash settled.

 

[soft_trader]

Thanks for it. Effectively means I am out of Nifty and Bank Nifty trading business for good now.

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No need to worry. You can square off your 'stock derivative' positions before 3:30pm on expiry day and your positions will get cash settled. Failure to do so will result in physical delivery.

If you are trading in nifty/banknifty or any index derivative then you need not to worry about physical settlement, as physical settlement is only for stock derivatives.
All index derivatives will be cash settled.

 

[headstrong007]

Now Tax hungry Govt want,
spot commodity exchanges!!

Spot commodity exchanges for gold, metals and even energy products like natural gas could see the light of day under the Securities and Exchange Board of India (Sebi) as the regulator.

http://www.business-standard.com/ar...-spot-commodity-exchanges-118042300029_1.html

*************
They want to move the MCX derivative volume to Cash(spot)! Physical settlement of Gold, Silver even energy products derivative contract may be next!

Sebi is, however, reluctant to regulate spot commodity exchanges. It has already responded to the committee report, saying commodity spot markets do not fall under the ambit of its regulatory purview. But Govt will force them soon bcoz STT in delivery is much more.
I except new move to cut retailers participation in MCX F&O would start soon after Spot commodity exchange is set up.
So, there might be the physical delivery(in DEMAT) of Crude too! What a shame!

************
Actually, spot commodity is not a bad idea. But, the real hidden agenda(to increase STT collection) behind it to move the derivative volume to cash(spot) market using the physical settlement, increasing lot size, max exposure using ITR, etc is a very disturbing idea. Now the intention is crystal clear.

 

[Just-Trade]

Now Tax hungry Govt want,
spot commodity exchanges!!

Spot commodity exchanges for gold, metals and even energy products like natural gas could see the light of day under the Securities and Exchange Board of India (Sebi) as the regulator.

http://www.business-standard.com/ar...-spot-commodity-exchanges-118042300029_1.html

*************
They want to move the MCX derivative volume to Cash(spot)! Physical settlement of Gold, Silver even energy products derivative contract may be next!

Sebi is, however, reluctant to regulate spot commodity exchanges. It has already responded to the committee report, saying commodity spot markets do not fall under the ambit of its regulatory purview. But Govt will force them soon bcoz STT in delivery is much more.
I except new move to cut retailers participation in MCX F&O would start soon after Spot commodity exchange is set up.
So, there might be the physical delivery(in DEMAT) of Crude too! What a shame!

************
Actually, spot commodity is not a bad idea. But, the real hidden agenda(to increase STT collection) behind it to move the derivative volume to cash(spot) market using the physical settlement, increasing lot size, max exposure using ITR, etc is a very disturbing idea. Now the intention is crystal clear.

Yeah..thought was crystal clear when Nifty Future Lot size was increased from 25 to 75 on 2015. Now, within a 3 year, they want to triple it. For whom they are doing it all. For themselves by forcing retail traders to cash market thereby extracting more n more STT.

Just-Trade