Sebi new proposal.

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  #1  
Old 1st April 2008, 07:41 AM
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Default Sebi new proposal.



Hi All,
I read in some sites that Sebi is praposing a new rule for F&O trading as given below..

"According to the draft, the investors would be required to have a minimum net worth of Rs 5 lakh for trading in derivative segments.".. can any body please explain what does this exactly means..

Does this mean that we need to have 5Lakh in our account to trade in F&O or each transaction cost should be 5Lakhs...

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  #2  
Old 1st April 2008, 08:43 AM
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Default Re: Sebi new praposal.

http://en.wikipedia.org/wiki/Net_worth

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  #3  
Old 1st April 2008, 04:04 PM
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Default Re: Sebi new proposal.

Quote:
Originally Posted by mallaravi View Post
Hi All,
I read in some sites that Sebi is praposing a new rule for F&O trading as given below..

"According to the draft, the investors would be required to have a minimum net worth of Rs 5 lakh for trading in derivative segments.".. can any body please explain what does this exactly means..

Does this mean that we need to have 5Lakh in our account to trade in F&O or each transaction cost should be 5Lakhs...
It means a person's individual assets minus individual liabilities should be greater than 5 Lacs.

BTW, if there is any such move, it'll be most stupid thing coming out of SEBI's stable.

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  #4  
Old 1st April 2008, 06:27 PM
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Default Re: Sebi new proposal.

Agree with asish 100% on the stupidity front.

Once again request all to sent their suggestions opinions to susantad @ sebi.gov.in

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  #5  
Old 1st April 2008, 07:22 PM
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Default Re: Sebi new proposal.

Idea is to keep away the punters who play in the FnO but they will always be their as they have Networth far more than 5 lakh.
Atleast this move will keep the individuals who directly play in derivative without any balance or worth and go bankrupt idea is good but implementation not possible.

Better would be to allow derivative only to once who are in the market for some specific time and have shares worth of 5 lakh delivered to their account.

I believe its important to first have experience in delivery then go for derivatives. whatever its difficult to implement

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  #6  
Old 1st April 2008, 09:59 PM
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Default Re: Sebi new proposal.

Maybe it is to increase the paper work and headaches for the brokers and their customers

Margin requirements should cover risk. Not artificial controls like this which will be difficult to implement anyway.

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  #7  
Old 2nd April 2008, 09:30 AM
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Default Re: Sebi new proposal.

I thought the mininifty was introduced to encourage the retail investor to participate in fno.

If the idea is to keep him away wouldn't it be simpler to raise the lot size to the figure considered high enough to discourage him.

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  #8  
Old 2nd April 2008, 10:10 AM
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Default Re: Sebi new proposal.

Quote:
Originally Posted by rajsingh View Post
I thought the mininifty was introduced to encourage the retail investor to participate in fno.

If the idea is to keep him away wouldn't it be simpler to raise the lot size to the figure considered high enough to discourage him.
Then they would beg borrow and steal and arrange for margin, and again loose it all.......

Sebi should not interfere.... as everyone knows what derivatives can do to their accounts, and people who do not take the trouble to find out, usually learn the hard way.

Why do u think there is volume in cash mkt........

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  #9  
Old 2nd April 2008, 10:19 AM
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Default Re: Sebi new proposal.

Exactly. I don't see how these proposals would help in any way.

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  #10  
Old 2nd April 2008, 01:42 PM
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Default Re: Sebi new proposal.

very arbitrary proposal. wont be surprised if this will be followed by lot of derivative fund launches to woo investors who cant trade in derivatives. but one thing is for sure. lot of traderji members would become analysts, as they would have to stop trading.
I would be happy if sebi says that u have to complete NCFM derivative module to trade in derivatives. education i can understand, but why these arbit figures? why not 2 lakhs? or 20 lakhs?

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