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

[HEM]

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.

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.

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

ST

Because he (Sumo) is a funny guy....who have a straightforward and ingenious mind and heart.........

HEM

 

[cinderblock]

Conversation with broker:

Broker: 11725 SL --- sureshot trade.
Me: Poora----1 lot laga de
Broker: Kya Sir, Mazak kar rahe ho? 5 to banta hain
Me: Didn't you hear Sebi
Broker: Networth Sebi ko dekhne do. Order to mere through jaayega
Me: Okay 3 lots. If the trade hits SL, don't trouble me for networth - ever! If it hits target I'll double the lots next time. Don't call me everyday

 

[NJ78]

Given the way things are, I won't be surprised if SEBI asks us to submit a "Certificate of Sanity" before we're allowed to trade. I can just imagine the conversation going something like this:

SEBI: Please submit your Certificate of Sanity by the first day of the new year.
Trader: Here, sir. My sanity certificate... and Happy new year.
SEBI: Hmm... It says you're sane.
Trader: Yes, sir. I'm sane.
SEBI: Are you sure?
Trader: Yes, sir. Even my mother thinks I'm too normal.
SEBI: Okay, one last thing...
Trader: What, sir?
SEBI: Have you linked your Certificate of Sanity with your Aadhaar card?
Trader: ...


On a sort of related note, those who are into reading and stuff, specially the early 20th century literary works, check out the books of Franz Kafka. The Trial is one of my favourites.

 

[Novice30]

telling to sebi is not issue ...but what abt broker leaks ..
here you open one trading account next day you have 10 sms trading calls
how safe is your info at the broker ...
Some times they even suggest qty to buy may be they know your balance as well.
Now after this tv/fridge/car salesman will call

Good point. Who will guarantee the safety of such important documents ?

 

[Riskyman]

Also, show proof of at least 2 children before marriage, to show you are capable of having kids and are able to raise them.

Hahaha. They are already creating a DNA bank to profile people aka "The DNA technology & Regulation Bill 2018". So please ensure you have kids only with your wife or your would-be wife.

On a serious note, The govt claims the data will be used for criminal investigations and justice delivery. But one can be sure this will be misused just like Aadhaar.

 

[Novice30]

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. "

So as per the pdf above, If your networth above 25 lakhs then business as normal and if your networth is less than 25 lakhs then just submit your graduation degree and then business as normal.

But the bottom line is that a networth certificate will now become compulsory to trade in Indian markets.

 

[HEM]

Physical settlement in F&O to attract 0.10% STT: CBDT tells HC :-

https://economictimes.indiatimes.co...10-stt-cbdt-tells-hc/articleshow/65581214.cms


Taking delivery against derivatives? Pay same STT as in buying shares :-

https://economictimes.indiatimes.co...-as-in-buying-shares/articleshow/65587034.cms

 

[Tejas Khoday]

Given the way things are, I won't be surprised if SEBI asks us to submit a "Certificate of Sanity" before we're allowed to trade. I can just imagine the conversation going something like this:

SEBI: Please submit your Certificate of Sanity by the first day of the new year.
Trader: Here, sir. My sanity certificate... and Happy new year.
SEBI: Hmm... It says you're sane.
Trader: Yes, sir. I'm sane.
SEBI: Are you sure?
Trader: Yes, sir. Even my mother thinks I'm too normal.
SEBI: Okay, one last thing...
Trader: What, sir?
SEBI: Have you linked your Certificate of Sanity with your Aadhaar card?
Trader: ...


On a sort of related note, those who are into reading and stuff, specially the early 20th century literary works, check out the books of Franz Kafka. The Trial is one of my favourites.

For more clarity on sanity, I strongly recommend that you read the SEBI regulations on Criteria for a "Fit and Proper Person", 2004. Here's an excerpt from the criteria for determining such a person from the SEBI website:

(1) For the purpose of determining as to whether an applicant or the intermediary seeking registration under any one or more of the relevant regulations is a �fit and proper person�, the Board may take account of any consideration as it deems fit, including but not limited to the following criteria �

(a) financial integrity;

(b) absence of convictions or civil liabilities;

(c) competence;

(d) good reputation and character;

(e) efficiency and honesty; and

(f) absence of any disqualification to act as an intermediary as stipulated in these regulations.

The link contains more details on this subject.

 

[Tejas Khoday]

Physical settlement in F&O to attract 0.10% STT: CBDT tells HC :-

https://economictimes.indiatimes.co...10-stt-cbdt-tells-hc/articleshow/65581214.cms


Taking delivery against derivatives? Pay same STT as in buying shares :-

https://economictimes.indiatimes.co...-as-in-buying-shares/articleshow/65587034.cms

It is warranted. Physical settlement = Delivery transaction = Delivery rates fo STT. ANMI petition in the court was sort of surprising because it's straightforward IMO.

 

[Tejas Khoday]

Good point. Who will guarantee the safety of such important documents ?

Very valid concerns! I can't comment on the privacy policies of other brokers but we never leak data or indulge in any practices which can represent a conflict of interest.