To reflect global initiatives on product suitability, a framework has been approved. Individual investors may freely take exposure in the market(cash and derivatives) upto a computed exposure based on their disclosed income as per their Income Tax Return(ITR) over a period of time. For exposure beyond the computed exposure, the intermediary would be required to undertake rigorous due diligence and take appropriate documentation from the investor.
Mr Tyagi added, "Initially the trading in F&O will be made income-linked. If the investor goes beyond what his ITR (income tax returns) shows, the broker should take due diligence. We will release the guidelines soon in this regard."
India is probably one of the only countries in the world where the governing body of the business have no experience in running the business on their own yet have the power to destroy that business for other small business owners.
India is probably one of the only countries in the world where the governing body of the business have no experience in running the business on their own yet have the power to destroy that business for other small business owners.