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

headstrong007

----- Full-Time ----- Day-Trader
@nurav SEBI may not give permission to trade just 1 lot or just with 1-2 lakh capital. There is a rumor that they want to set min capital for F&O trading high enough to ban entry of maximum small retail traders or investors for direct entry.
Min cap for F&O may be 5 lakh or even 10 lakh.

Currently, we don't have any idea of the detailed plan until SEBI come with final Rule. Let's wait and try to maximize net-worth or trading capital in the meantime. Let's don't hope much. Something worst may come than most of the retail traders are thinking as SEBI want to cut option traders(mainly trading with less than 1 lakh capital) participation too.
Indirectly all the high volume traders will feel the impact cost due to the liquidity crisis and bid-ask spread.

It is a really bad time for all type of traders. Don't think SEBI is doing is anything good for small retailer's favor. SEBI is just destroying the stability of the market knowingly or unknowingly.

If you banned the small retailers completely to enter F&O then there is no way to grow! This is not just increasing the margin like you can trade 1 lot with 1 Lakh, this going to be much more serious if min capital rule is attached for F&O trading.
 
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vikas2131

Well-Known Member
@nurav SEBI may not give permission to trade just 1 lot or just with 1-2 lakh capital. There is a rumor that they want to set min capital for F&O trading high enough to ban entry of maximum small retail traders or investors for direct entry.
Min cap for F&O may be 5 lakh or even 10 lakh.

Currently, we don't have any idea of the detailed plan until SEBI come with final Rule. Let's wait and try to maximize net-worth or trading capital in the meantime. Let's don't hope much. Something worst may come than most of the retail traders are thinking as SEBI want to cut option traders(mainly trading with less than 1 lakh capital) participation too.
Indirectly all the high volume traders will feel the impact cost due to the liquidity crisis and bid-ask spread.

It is a really bad time for all type of traders. Don't think SEBI is doing is anything good for small retailer's favor. SEBI is just destroying the stability of the market knowingly or unknowingly.

If you banned the small retailers completely to enter F&O then there is no way to grow! This is not just increasing the margin like you can trade 1 lot with 1 Lakh, this going to be much more serious if min capital rule is attached for F&O trading.
5 lakhs is possible ..10 lakhs too high.. serious loss of liquidity...but yeah as you said anything is possible..
 

headstrong007

----- Full-Time ----- Day-Trader
SEBI already mentioned the word equity investing also. They want to stop delivery based leverage also (like 4X with Samco cash plus).
Don't know about intraday cash equity trading, this is the only section they don't mention directly. This is also legally under 'speculation' - separate income tax category. Another target was to shift to the F&O volume to cash market so intraday cash section may skip strict restrictions.
But SEBI repeatedly said, they are worried about excessive speculation, so 10x-20x intraday cash leverage days may be over soon. :oo
But, only few hope for small traders still exists in this 'speculation' category - 'intraday cash trading'.
SEBI may not completely ban to participate in all form of trading for small traders or investors bcoz there is also pressure from brokerage houses. Still, the intraday cash trading section is the only ray of hope for small retail traders.
 
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vikas2131

Well-Known Member
SEBI already mentioned the word equity investing also. They want to stop delivery based leverage also (like 4X with Samco cash plus).
Don't know about intraday cash equity trading, this is the only section they don't mention directly. This is also legally under 'speculation' - separate income tax category. Another target was to shift to the F&O volume to cash market so intraday cash section may skip strict restrictions.
But SEBI repeated said, they are worried about excessive speculation, so 10x-20x intraday cash leverage days may be over soon. :oo
But, only few hope for small traders still exists in this 'speculation' category - 'intraday cash trading'.
SEBI may not completely ban to participate in all form of trading for small traders or investors bcoz there is also pressure from brokerage houses. Still, the intraday cash trading section is the only ray of hope for small retail traders.
Days of over-leveraging will be over ....Btw i remember a video from zee news where they were saying that Govt wants to increase option business after this was all announced ?
 

headstrong007

----- Full-Time ----- Day-Trader
Days of over-leveraging will be over ....Btw i remember a video from zee news where they were saying that Govt wants to increase option business after this was all announced ?
I am also surprised! I have shared some link that time, where they were saying Govt want small retailers must trade with low-risk option segment (buy side only) and Govt wants to increase the volume in option segment.
Introduction of Weekly Option was the result of such a goal, it was very much successful.
But, now the stance is clearly changed. :stop:
 

vikas2131

Well-Known Member
I am also surprised! I have shared some link that time, where they were saying Govt want small retailers must trade with low-risk option segment (buy side only) and Govt wants to increase the volume in option segment.
Introduction of Weekly Option was the result of such a goal, it was very much successful.
But, now the stance is clearly changed. :stop:
we will have to see what happens..considering the fact almost 50 percent of volume from retail traders ..any serious restrictions will lead to serious crisis of liquidity and implosion of derivative markets
 

hitesh05

Well-Known Member
Honestly I don't think too much hard action will be taken also they should give sufficient time to traders to adopt it