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

[Satya.]

Thousands of people will loose jobs at brokerages, as brokerages wont be able to afford current staff levels with a drastic drop in volumes.

these days a brokrage house means hardly 4-5 ppl running it
so how mny ppl will lose job?

 

[cloudTrader]

these days a brokrage house means hardly 4-5 ppl running it
so how mny ppl will lose job?

There are still many conventional brokerage houses who have branches all over. Cumulative effect will be quite much to consider.

 

[Satya.]

but I am sure traders will find a way out by way of CA networth certificate etc and will keep trading but on low exposure in my view.

Smart_trade

say example @headstrong007 lyk trders used 2 trade 50 lots n used 2 compound on 1L per lot capital,now dey cant do tht.
their trding lot size will decrease n compounding also.

so how a smll trader will adjst n trde?
we hv 2 produce networth every year bhai logo bcuz every yr our financial state change
& trding on no leverage,less explosure means making 200rs on 1L capital daily

 

[Riskyman]

Thousands of people will loose jobs at brokerages, as brokerages wont be able to afford current staff levels with a drastic drop in volumes.

Hmm... I dont know about jobs at brokerage but one thing I know..... There will surely be a drop in "Pakoda" sales outside the BSE

 

[Swift.trader]

http://www.anmi.in/index.php/work/sebi/2018-2019


http://www.anmi.in/upload/anmi_work/1531397158ANMI_Note_on_Product_Suitability.pdf


"While we understand SEBI's concern on the issue of product suitability framework that needs applied to F&O trading, at the very outset we would like to point out that India is uniquely adaptable to understanding the F&O markets by the masses as the country boasts of the oldest Stock Exchange of Asia, as well as years of experience with the unique *Badla" system that has evolved as the F&O market as we see today. Further, the entire F&O market is regulated, exchanged traded with standardized contracts and risk management norms that are by now well understood by the general masses.


Application of product suitability framework to the entire spectrum of market participants would not serve the interests of the capital markets. There exist a multitude of client types in the Indian equity markets be it Retail, FINI, Corporates, Institutions, etc. A common approach with respect to product suitability for all would seriously damage market liquidity and efficiency.

Therefore, at the very beginning, there is a need to make a clear distinction between participants who have the both the knowledge and the tinancial ability to participate in the derivative markets and those who don't. "

 

[sumosanammain]

these days a brokrage house means hardly 4-5 ppl running it
so how mny ppl will lose job?

Have you been to any larger Brokerage Firm?
A prominent broker for Example had 40 people in just their EDP Room in Nariman Point. Plus around 400 more people across 2 floors, and they have numerous such locations, and am quoting just 1 broker. This was last year. Maybe they have added more staff in this year. This Broker is a full service broker, with complete Equity Research Teams, and a huge Team of HNI Relationship Managers.

One friend of mine is a broker on both the the NSE and the BSE, does only institutional business, and trades for himself has a staff of 250 people. He has 7 other offices across India, though these are having staff of about 50 people each.

 

[timepass]

SEBI already has our PAN and Aadhar, they know our financial details and net worth all the time, so there shouldn't be any need for additional documentation.

 

[sumosanammain]

I had Upma and Tea for Breakfast. Thought I would just let Sebi know... as they may want to know.... Also, went to the bathroom twice since morning. Hope I do not loose my eligibility to trade as I went twice.

 

[sumosanammain]

Now maybe the Govt will make a rule asking people to first show they are financially capable of buying a car, before taking a driving licence.
Same for passport, show tickets to a foreign destination before applying.
Also, show proof of at least 2 children before marriage, to show you are capable of having kids and are able to raise them.

 

[Smart_trade]

I had Upma and Tea for Breakfast. Thought I would just let Sebi know... as they may want to know.... Also, went to the bathroom twice since morning. Hope I do not loose my eligibility to trade as I went twice.

I wonder how you think of these funny things Sumo...

ST