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

headstrong007

----- Full-Time ----- Day-Trader
hey did you get a reply from option 4? I mean did you get any reply by writing directly to Govt of India?
NO.
Probably I got a routine reply that your problem is solved. :rolleyes:

*******
I wrote a detailed letter to SEBI also point by point. Probably they read it, I mentioned I am a full time trader.
I request to many trader friend to write a letter to SEBI. Many trader friend did that.
After 18 Sept meeting passed with no action on networth-itr linking , I think SEBI also aware of the growing anger from traders community.

*******
Now, don't worry too much now, concentrate on trading as most vital Sept 18 meeting was over and brokers and exchanges jointly prevented the networth-itr linking move.

Most importantly SEBI advanced the date of the board meeting to September 18 from scheduled date Sept 27 so that implement that decision of ITR and networth based linking as early as possible. :p They failed miserably.

As per earlier report,
Implementation of the Fair Market report may kick-up a storm as the committee has recommended entry barriers for retail investors. It is proposed that retail players be allowed to trade in markets based on their net worth.

Yes it kicked up such a nice storm in Sept 18 meeting that SEBI may not try to take in another 5 years. :blackeye:

Now all traders must be busy increasing net worth for next 5 years.

But since the start of the thread SEBI have implemented many trader unfriendly measures including psychical settlement and ASM. ASM will hurt the liquidity for sure. So SEBI must stop now. They already have something in their kitty, the ASM will decrease intraday exposure also-
BO, CO, MIS margin all are going to increase.
So, now SEBI must stop, for next 5 years at least.
Who knows the margin requirement of Nifty, Bank Nifty after 5 years. Index will increase further in next 5 year so that SEBI may not need to cut the exposure. Margin will be much higher in 2023 then. ;)
 
Last edited:
So basically, almost everyone jumped the gun :).
Or maybe BECAUSE everyone jumped the gun & got alarmed about the changes, & made a lot of noise, that SEBI decided to pull back. ;)

I told you guys.... :)
Though was scared shit of disappearing liquidity if the Net worth rule had been levied.
Net worth toh hai, but trade kiske saath karen? saamne bhi toh position lene wala hona chahiye :)
That's exactly what I was concerned about too; it's already difficult enough to trade a couple of lots without slippage in most stock-F&O, so reduction in liquidity from such an authoritarian measure would have affected everyone to some degree.
 

headstrong007

----- Full-Time ----- Day-Trader
Or maybe BECAUSE everyone jumped the gun & got alarmed about the changes, & made a lot of noise, that SEBI decided to pull back. ;)
I am sure SEBI got many protest mail from real traders. At least 30 from my close circle send angry mail to SEBI.
And the effort we made in the thread attracted more traders to do so.
I wrote a detailed point by point letter to SEBI about the all possible bad effects. HEM wrote a detailed email to SEBI.

The article written by NSE Chief was building our confidence too. And eventually some brokers join the protest including ANMI.
Everyone jumped the gun to SEBI. :p, even the financial sites like moneycontrol, bloomberg, economic times, live mint, hindu business published multiple articles against it, thats why SEBI failed. We made it together.


SEBI was very serious even few days b4 this meeting, see the article, it said it all about that meeting..

https://www.thehindubusinessline.co...-board-meeting-on-sept-18/article24835328.ece

Finally SEBI failed... As every one jumped the gun and got alarmed.
Finally, we traders are very happy. Now its time to make more money & concentrate our business.

Happy Trading. Cheers.
 
NO.
Probably I got a routine reply that your problem is solved. :rolleyes:

*******
I wrote a detailed letter to SEBI also point by point. Probably they read it, I mentioned I am a full time trader.
I request to many trader friend to write a letter to SEBI. Many trader friend did that.
After 18 Sept meeting passed with no action on networth-itr linking , I think SEBI also aware of the growing anger from traders community.

*******
Now, don't worry too much now, concentrate on trading as most vital Sept 18 meeting was over and brokers and exchanges jointly prevented the networth-itr linking move.

Most importantly SEBI advanced the date of the board meeting to September 18 from scheduled date Sept 27 so that implement that decision of ITR and networth based linking as early as possible. :p They failed miserably.

As per earlier report,
Implementation of the Fair Market report may kick-up a storm as the committee has recommended entry barriers for retail investors. It is proposed that retail players be allowed to trade in markets based on their net worth.

Yes it kicked up such a nice storm in Sept 18 meeting that SEBI may not try to take in another 5 years. :blackeye:

Now all traders must be busy increasing net worth for next 5 years.

But since the start of the thread SEBI have implemented many trader unfriendly measures including psychical settlement and ASM. ASM will hurt the liquidity for sure. So SEBI must stop now. They already have something in their kitty, the ASM will decrease intraday exposure also-
BO, CO, MIS margin all are going to increase.
So, now SEBI must stop, for next 5 years at least.
Who knows the margin requirement of Nifty, Bank Nifty after 5 years. Index will increase further in next 5 year so that SEBI may not need to cut the exposure. Margin will be much higher in 2023 then. ;)
thanks :) ur post was very informative. I asked my friends also to write to govt/sebi over it, after reading your post.
 
hey, is there any admin/moderator on this thread?

i am unable to click like on the posts made by others? infact I dont even see the like button?

is that because I am relatively new member, or is there some other reason?

(Edit: I am now able to see the like button. My thanks to the admin who solved this issue.)
 
Last edited:
My Take on ASM, Increasing Lot Size, and Linking ITR/Net Worth to Exposure:

Linking New Worth to Exposure:
Outrightly wrong, and with malicious intention to cut out retail from markets. Also illegal, and against the fundamental rights of citizens to financial freedom and economic equality.

ASM, Incresing Lot Size:
These are also very bad steps and also illogical and not at all sound. The purpose of margins should be to cover the market risk, and nothing else. Any margin above that is required to cover the market risk and volatility just makes no sense. The only purpose it attains is to reduce positions taken by retail. Here are some questions which need to be answered. 1) Why should lot size for SBI be 3000, why it should not be 250 or 500 or 1000? 2) Also if 15% margin is sufficient to cover market risk, why should the margin be 20% or 25%? 3) how can small investors, who have 500 shares of SBI, how can they hedge their positions? Is there any good, logical answer to these three questions. If not, then clearly these steps are not done for welfare of people of India.

If it was in my control, I would reduce F&O lot sizes to 1 lakh per lot. And keep margins at 10-20% depending on whatever is sufficient to cover risk properly. This will not only enable more and more people to trade, this will also mean that even small investors can also hedge their portfolio. The purpose of markets should be to enable even smallest investor to trade or hedge.

Also all these steps which limit retail (ASM, Increasing Lot Size, Linking Net Worth ITR to Exposure etc etc) will make markets more inefficient and more prone to frauds and manipulations. These restrictions means pushing retail money towards mutual funds, which means two things: 1)easy money for mutual funds, 2) less competition to mutual funds from good retail traders. This will make mutual funds also reckless and they will play havoc with retail money, and loose it very big in the markets. Overall the citizens of this country will become victims due to these restrictions, and also the financial markets will become more inefficient. Very big lot sizes, unnecessary margins then required, and other such steps to limit retail are just regressive steps, and nothing else. Or else someone needs to justify the reasons which prove these steps are good. I haven't seen any logic or good points from SEBI or anyone which can justify these steps to limit retail users.

In summary, the lesser the lot sizes, the lesser the margins but enough and sufficient to cover risk, the more even the smallest retail investor is able to participate in markets, the more inclusive markets are of smallest of investor, the more better it is for efficiency of financial markets, the better it is for retail investors, the better it is for economy, the better is it for common people investing in mutual funds.
 
Last edited:
I am sure SEBI got many protest mail from real traders. At least 30 from my close circle send angry mail to SEBI.
And the effort we made in the thread attracted more traders to do so.
I wrote a detailed point by point letter to SEBI about the all possible bad effects. HEM wrote a detailed email to SEBI.

The article written by NSE Chief was building our confidence too
. And eventually some brokers join the protest including ANMI.
Everyone jumped the gun to SEBI. :p, even the financial sites like moneycontrol, bloomberg, economic times, live mint, hindu business published multiple articles against it, thats why SEBI failed. We made it together.


SEBI was very serious even few days b4 this meeting, see the article, it said it all about that meeting..

https://www.thehindubusinessline.co...-board-meeting-on-sept-18/article24835328.ece

Finally SEBI failed... As every one jumped the gun and got alarmed.
Finally, we traders are very happy. Now its time to make more money & concentrate our business.

Happy Trading. Cheers.
 
I am sure SEBI got many protest mail from real traders. At least 30 from my close circle send angry mail to SEBI.
And the effort we made in the thread attracted more traders to do so.
I wrote a detailed point by point letter to SEBI about the all possible bad effects. HEM wrote a detailed email to SEBI.

The article written by NSE Chief was building our confidence too. And eventually some brokers join the protest including ANMI.
Everyone jumped the gun to SEBI. :p, even the financial sites like moneycontrol, bloomberg, economic times, live mint, hindu business published multiple articles against it, thats why SEBI failed. We made it together.


SEBI was very serious even few days b4 this meeting, see the article, it said it all about that meeting..

https://www.thehindubusinessline.co...-board-meeting-on-sept-18/article24835328.ece

Finally SEBI failed... As every one jumped the gun and got alarmed.
Finally, we traders are very happy. Now its time to make more money & concentrate our business.

Happy Trading. Cheers.
Dear Headstrong Bro
Thanks a lot for all you have done for trading community.Its really so nice of you.
please share the article written by Nse Chief
thanks
 

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?