Big crash coming tomorrow

prabhjeetrana · #11 16th October 2007, 10:46 PM

Quote:

Originally Posted by ratan jain

Yippppppppeeeeeeeeee!!!!!!!!!!!!!!!!!!

Yyyyyaaaaaayyyyyyyyyyyyyyyyyyyy!!!!!!!!

Yipppppppppeeeeeee!!!!!!!!!!!!!!!!!!!!!!!!!

Arre Ratan boss have some sympathy for others

rkkarnani · #12 16th October 2007, 10:49 PM

Quote:

Originally Posted by prabhjeetrana

Sebi has done it again, it has robbed the investors again

SEBI has announced it will clamp down the P- notes, so FIIs will withdraw huge money tomorrow.All indian ADRs are trading 4-9 % down on Dow Jones.
God help us lambs now

From Moneycontrol Site :

Market watchdog Sebi plans to take the sheen off participatory notes and that too, not by cracking its whip, but by making the instrument lesser attractive to foreign investors. In this exclusive story, CNBC-TV18 finds that the regulator is also trying to use a similar approach to register hedge funds!

White money or black money? Hot money or the money of long term investors? As the debate on the colour of money becomes hotter - regulator Sebi is taking no chances. It plans to bring in more transparency into the foreign flows - and not by tougher regulations, but by better economics! And among the regulator's priority list is Offshore Derivative Instruments, or Participatory Notes.

M Damodaran, Chairman, Sebi calls, "PN route attttractive, because of low costs. Sebi is exploring making investments directly more attractive than PNs for foreign investors."

A participatory note is a derivative instrument issued by a Sebi-registered FII to those foreign investors, who want to buy Indian stocks. It is believed that many hedge funds use the PN route to invest in the Indian market. And so, regulator Sebi is also trying to convince these investors of the benefits of investing directly into the Indian market.

"Sebi is in dialogue with representative organisation that represent such investors. We are trying to tell them that those compying should apply and invest in their own name instead of using PN route. Over time, it will become more expensive to use other routes to invest in India," says Damodaran. That is an issue that many market experts and bankers will be keenly watching.

Many times in the past, the P-note route has been severly criticised for its opacity. That is because investors coming in via this route do not have to declare their identity. And so it is widely believed that the route has also been used to launder money. Many market participants say that while a cost disincetive will help Sebi partly, it may not necessarily control India's big P-note problem.

prabhjeetrana · #13 16th October 2007, 10:51 PM

Quote:

Originally Posted by rkkarnani

From Moneycontrol Site :

Market watchdog Sebi plans to take the sheen off participatory notes and that too, not by cracking its whip, but by making the instrument lesser attractive to foreign investors. In this exclusive story, CNBC-TV18 finds that the regulator is also trying to use a similar approach to register hedge funds!

White money or black money? Hot money or the money of long term investors? As the debate on the colour of money becomes hotter - regulator Sebi is taking no chances. It plans to bring in more transparency into the foreign flows - and not by tougher regulations, but by better economics! And among the regulator's priority list is Offshore Derivative Instruments, or Participatory Notes.

M Damodaran, Chairman, Sebi calls, "PN route attttractive, because of low costs. Sebi is exploring making investments directly more attractive than PNs for foreign investors."

A participatory note is a derivative instrument issued by a Sebi-registered FII to those foreign investors, who want to buy Indian stocks. It is believed that many hedge funds use the PN route to invest in the Indian market. And so, regulator Sebi is also trying to convince these investors of the benefits of investing directly into the Indian market.

"Sebi is in dialogue with representative organisation that represent such investors. We are trying to tell them that those compying should apply and invest in their own name instead of using PN route. Over time, it will become more expensive to use other routes to invest in India," says Damodaran. That is an issue that many market experts and bankers will be keenly watching.

Many times in the past, the P-note route has been severly criticised for its opacity. That is because investors coming in via this route do not have to declare their identity. And so it is widely believed that the route has also been used to launder money. Many market participants say that while a cost disincetive will help Sebi partly, it may not necessarily control India's big P-note problem.

RK all we should now do is have a look at how Indian ADRs close tomorrow, we will loose more than the ADRs loose

prabhjeetrana · #14 16th October 2007, 11:03 PM

Experts, seniors, traderji tell us what to do tomorrow at opening. Should we keep on holding or book whatever losses we make

renu daga · #15 16th October 2007, 11:16 PM

Quote:

Originally Posted by prabhjeetrana

17000 on sensex and 5000 on nifty may not be a big deal tomorrow

to be truly speaking ,,,5100 is sure on cards,, ...within this month...ending,,,
renu

Czar · #16 16th October 2007, 11:43 PM

So basically the black money will be trapped as a fast exit will crash the markets...

nitinku5021a · #17 16th October 2007, 11:52 PM

This is what i got from Business Standard. Can Someone please throw more light on this.

Proposed Measures:
Following consultation with the Government, the following measures are proposed to be implemented urgently:

1) FIIs and their sub-accounts shall not issue/renew ODIs with underlying as derivatives with immediate effect. They are required to wind up the current position over 18 months, during which period SEBI will review the position from time to time.

2) Further issuance of ODIs by the sub-accounts of FIIs will be discontinued with immediate effect. They will be required to wind up the current position over 18 months, during which period SEBI will review the position from time to time.

3) The FIIs who are currently issuing ODIs with notional value of PNs outstanding (excluding derivatives) as a percentage of their AUC in India of less than 40% shall be allowed to issue further ODIs only at the incremental rate of 5% of their AUC in India.

4) Those FIIs with notional value of PNs outstanding (excluding derivatives) as a percentage of their AUC in India of more than 40% shall issue PNs only against cancellation / redemption / closing out of the existing PNs of at least equivalent amount.

subratabera · #18 16th October 2007, 11:54 PM

Quote:

Originally Posted by ratan jain

Yippppppppeeeeeeeeee!!!!!!!!!!!!!!!!!!

Yyyyyaaaaaayyyyyyyyyyyyyyyyyyyy!!!!!!!!

Yipppppppppeeeeeee!!!!!!!!!!!!!!!!!!!!!!!!!

You look really happy my friend....

CreditViolet · #19 16th October 2007, 11:57 PM

Quote:

Originally Posted by prabhjeetrana

Experts, seniors, traderji tell us what to do tomorrow at opening. Should we keep on holding or book whatever losses we make

It all depends on a lot of things. I dont think anybody can give you any definite answers.

Times like this one feels good to be a trader with EndOfDay exits.

Hopefully will get some good volatility tomorrow and I can take rest of the month off

zuljana · #20 17th October 2007, 12:02 AM

Thank God.......

I Dont Have Any Open Positions In Either Derivatives Or Equity.....

Thank God Again