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

vikas2131

Well-Known Member
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
Are they increasing lot size once again ?
 

TraderGYO

Well-Known Member
Meaning they are shutting down derivatives segment?
they are trying to link derivative exposure to ITR, meaning if your income from other businesses/job is less than, say, few lakhs per year then you can not trade even 1 lot futures. Meaning you will be judged on your ability to trade by your income from unrelated jobs and whether or not if such salaried person will have the time to trade during market hours is also not gorment babus' concern. The details are unclear. Things can change though.
 
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vikas2131

Well-Known Member
https://www.moneylife.in/article/se...bout-derivatives-settlement-market/53791.html

SEBI wants to limit trading in derivatives to individuals on the basis of a sum computed on their disclosed income-tax returns. Intermediaries will be made to “undertake rigorous due diligence and take appropriate documentation from the investor.” An anonymous whistleblower, claiming to be an SMAC member, says that SEBI’s decisions are completely against the recommendations of SMAC, where most members, including the chairman, were of the view that the measures announced by SEBI would, in fact, ‘kill the derivatives market’ and, at the same time, not help improve the cash segment.
 

Tejas Khoday

Co-Founder & CEO, FYERS
Folks,

I don't know why my post was deleted here. Its alright, I am re-posting again. I have written an article which was published by Financial Express about the potential impact of SEBI's move to regulate retail traders' participation in derivatives. If you like what I have written, feel free to share it within your circles. We hope that traders will be empowered rather than discouraged.

https://www.financialexpress.com/mo...vatives-will-impact-retail-investors/1143544/
 

headstrong007

----- Full-Time ----- Day-Trader
Folks,

I don't know why my post was deleted here. Its alright, I am re-posting again. I have written an article which was published by Financial Express about the potential impact of SEBI's move to regulate retail traders' participation in derivatives. If you like what I have written, feel free to share it within your circles. We hope that traders will be empowered rather than discouraged.

https://www.financialexpress.com/mo...vatives-will-impact-retail-investors/1143544/
Thank you so much for this nice write-up.
You have nicely summed up the all the valid points we discussed here in details, :up:
like,
  1. If premium turnover is calculated, the ratio reduces to 2.5:1. It makes a really huge difference.
  2. Active retail trading community in India who already feel burdened by the multiple taxes & levies imposed on them (STT, GST, STCG, Stamp Duty, NSE Turnover charges) and now further restrictions to limit their participation in the derivative markets based on ITR declaration.
  3. For traders, trading is like a business and no other small business requires proof of previous income to undertake the venture. So the overwhelming feeling among them is, why should this be applicable for F&O trading?
with few nice add-on points from your side like,
They also feel that if borrowing is allowed in business, it is only fair that it should be allowed for investing too.
Yes, derivative trading is business according to the Govt & IT, so we derivative traders must expect a fair deal.

And most of the possible ill effects are also discussed in that article.
I wish SEBI must read that article. This article has come from interaction with real active traders. :happy:
Nice write-up. Publish it on money control also, if possible.
 

Tejas Khoday

Co-Founder & CEO, FYERS
Thank you so much for this nice write-up.
You have nicely summed up the all the valid points we discussed here in details, :up:
like,
  1. If premium turnover is calculated, the ratio reduces to 2.5:1. It makes a really huge difference.
  2. Active retail trading community in India who already feel burdened by the multiple taxes & levies imposed on them (STT, GST, STCG, Stamp Duty, NSE Turnover charges) and now further restrictions to limit their participation in the derivative markets based on ITR declaration.
  3. For traders, trading is like a business and no other small business requires proof of previous income to undertake the venture. So the overwhelming feeling among them is, why should this be applicable for F&O trading?
with few nice add-on points from your side like,
They also feel that if borrowing is allowed in business, it is only fair that it should be allowed for investing too.
Yes, derivative trading is business according to the Govt & IT, so we derivative traders must expect a fair deal.

And most of the possible ill effects are also discussed in that article.
I wish SEBI must read that article. This article has come from interaction with real active traders. :happy:
Nice write-up. Publish it on money control also, if possible.
Thanks @headstrong007, I have just represented active traders' views on Traderji and my views too. Media generally does not publish an already published article. It counts as plagiarism for them. However, I encourage you'll to circulate it if you find it useful so that people, in general, are aware of the real scenario. In any case, as a SEBI registered broker, we can't do much else but give our views and follow their rules diligently.
 
Folks,

I don't know why my post was deleted here. Its alright, I am re-posting again.
Sigh.. Yes, that post was deleted. It was a duplicate. It was also posted in the Fyers thread.

Please post in one place only, so that the discussion takes places in one thread only.

If unsure, please post in "General Trading Chat" thread.