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

[headstrong007]

@headstrong007, is this analysis valid for index option buyers also? Or just for stock option buyers in your opinion?

I hope for 2 things to happen now:

1.) That the trading hours remain as they are - i.e., till 3.30 pm or at the most stretch till 5.30 pm - just like a normal job day, which is fine by me.

2.) That they do not put any sanctions based on net worth criteria.

That analysis has less effective (minor effect) on index option as margin increased there is comparatively low - only 2% increased. But in stock options writing margin is about 40-50%.

1-> Trading hour will not stretch till 5:30 pm. Its either whole night session till 11:55 pm or nothing. Mean we have to wait for more for implementation.

2-> there is a possibility of not so strict net-worth based criteria as ASM already increased heavily.
But, IMO, some compulsory linking of ITR, like what share khan doc said, min 1.2 lakh income proof or min 1.2 lakh net-worth may come so that beginners can't open an account/trade options with few thousands in hand.
SEBI may not extend the restriction to cash market (investing or trading) also although SEBI express such desire.

 

[headstrong007]

But 1.2 lakh net-worth mean if SEBI is not so strict (to check loan etc) u can start trading with 1.2Lakh Capital in Savings Account using last 6-month statement. The decision is on brokers. Maybe only 1.2 lakh trading capital will be enough. Let's see. Looking for 18 September meeting.

If SEBI listens to ANMI proposal that above 25 Lakh cap must skip any such restriction and below 25 lakh is the retail trader then many pro-traders will skip the restriction. Brokers are also trying hard to prevent any hard rule as they will lose their business.

If SEBI wants NSE-BSE to listen to the brokers before night extension, then with the same logic SEBI must also listen to NSE-BSE and brokers and traders before implementing any strict net-worth based rule. The rule/logic must be same for all.

 

[afin]

That analysis has less effective (minor effect) on index option as margin increased there is comparatively low - only 2% increased. But in stock options writing margin is about 40-50%.

1-> Trading hour will not stretch till 5:30 pm. Its either whole night session till 11:55 pm or nothing. Mean we have to wait for more for implementation.

2-> there is a possibility of not so strict net-worth based criteria as ASM already increased heavily.
But, IMO, some compulsory linking of ITR, like what share khan doc said, min 1.2 lakh income proof or min 1.2 lakh net-worth may come so that beginners can't open an account/trade options with few thousands in hand.
SEBI may not extend the restriction to cash market (investing or trading) also although SEBI express such desire.

Thanks! I am majorly an index option guy only. The last time I bought stock options was back in 2015 when I bought some UPL options on the basis of some news. Like you said, lets wait for things

Meanwhile happy trading to all of us Lets not get bogged down!

 

[Tejas Khoday]

The recently formed Asset Managers Round Table of India (AMRI) has already succeeded in it's agenda. https://www.bloombergquint.com/law-...on-fund-ownership-rules-for-foreign-investors

This is FYI.

 

[augubhai]

The recently formed Asset Managers Round Table of India (AMRI) has already succeeded in it's agenda. https://www.bloombergquint.com/law-...on-fund-ownership-rules-for-foreign-investors

This is FYI.

So at the end of the day, we need coteries, unions, lobbies, cliques. Else, it's difficult to achieve our agenda.

 

[headstrong007]

So at the end of the day, we need coteries, unions, lobbies, cliques. Else, it's difficult to achieve our agenda.

I have said it here repeatedly,
Unity is Strength

************

Unity is Strength

Once upon a time, there was a flock of doves that flew in search of food led by their king. One day, they had flown a long distance and were very tired. The dove king encouraged them to fly a little further. The smallest dove picked up speed and found some rice scattered beneath a banyan tree. So all the doves landed and began to eat.
Suddenly a net fell over them and they were all trapped. They saw a hunter approaching carrying a huge club. The doves desperately fluttered their wings trying to get out, but to no avail. The king had an idea. He advised all the doves to fly up together carrying the net with them. He said that there was strength in unity.
Each dove picked up a portion of the net and together they flew off carrying the net with them. The hunter looked up in astonishment. He tried to follow them, but they were flying high over hills and valleys. They flew to a hill near a city of temples where there lived a mouse who could help them. He was a faithful friend of the dove king.
When the mouse heard the loud noise of their approach, he went into hiding. The dove king gently called out to him and then the mouse was happy to see him. The dove king explained that they had been caught in a trap and needed the mouse’s help to gnaw at the net with his teeth and set them free.
The mouse agreed saying that he would set the king free first. The king insisted that he first free his subjects and the king last. The mouse understood the king’s feelings and complied with his wishes. He began to cut the net and one by one all the doves were freed including the dove king.
They all thanked the mouse and flew away together, united in their strength.

Moral: When you work together, you are stronger. ​

https://www.moralstories.org/unity-is-strength/

 

[vikas2131]

Sebi to delay extension of trading hours at the derivatives markets, says report

This would mean that the plan to extend the time from next month may not become a reality.

The delaying is due to the fact that the regulator has not yet been able to resolve certain matters linked to the proposed extension.


https://www.cnbctv18.com/economy/se...he-derivatives-markets-says-report-764831.htm

 

[HEM]

Sebi to delay extension of trading hours at the derivatives markets, says report

This would mean that the plan to extend the time from next month may not become a reality.

The delaying is due to the fact that the regulator has not yet been able to resolve certain matters linked to the proposed extension.


https://www.cnbctv18.com/economy/se...he-derivatives-markets-says-report-764831.htm

It looks like nothing is going to happen and will continue to run as it is at least for some time or forever ...............


HEM

 

[hitesh05]

It looks like nothing is going to happen and will continue to run as it is at least for some time or forever ...............


HEM

I too think so HEM

 

[hitesh05]

deleted