Day Trading Stocks & Futures

vikas2131

Well-Known Member
Sebi plans uniform leverage norms

Traders may soon find it tough to borrow more than their capacity to bet on the market. The Securities and Exchange Board of India (Sebi) is planning to introduce uniform standards for margin funding that traders get from brokerages, said two people privy to the development. The move is aimed at clamping down on practices where brokerages allow traders to borrow much more than what they can afford, posing risks to the system.

The capital market regulator’s secondary market advisory commi ..

Read more at:
//economictimes.indiatimes.com/articleshow/67018741.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
 

vikas2131

Well-Known Member
Sebi plans uniform leverage norms

Traders may soon find it tough to borrow more than their capacity to bet on the market. The Securities and Exchange Board of India (Sebi) is planning to introduce uniform standards for margin funding that traders get from brokerages, said two people privy to the development. The move is aimed at clamping down on practices where brokerages allow traders to borrow much more than what they can afford, posing risks to the system.

The capital market regulator’s secondary market advisory commi ..

Read more at:
//economictimes.indiatimes.com/articleshow/67018741.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Back to net worth nonsense.
 
"Sebi had pulled up at least three brokerages, including a leading discount broking firm in the last one year for providing excessive leverage to their clients. The cases involve build-up of short positions in some of the blue-chip labels during the results season.

In one of the cases, the brokerage was providing its clients as much as 100 times leverage and this prompted several investors to take huge positions in a blue-chip auto stock. “The stock fell 7-8 per cent creating panic among
among investors. The brokerage almost went to the extent of a default,” said another person cited above."

I suppose we all know about this incident and who the broker is :)
 

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