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

[headstrong007]

How computed exposure could be calculated based on past incomes as per ITR? Any idea..

Just-Trade

Absolutely No Idea...

• No tax for individuals with income less than Rs 2,50,00.
• As most people in India fall in this group don't either pay taxes or file ITR
• I am eager to see the minimum exposure for such people. Only then probably we can get the idea of personal exposure by multiplying our income with it.

Sebi's move will ensure to open many accounts in the name of traders Father, Mother, Father in law etc etc. Now we can see 70-80 years old high net worth Grand Fathers are also trading!! (to protect younger peoples in their family from SEBI . A birthday gift for a student may be the access to a trading account in the name of father. SEBI/Govt probably underestimates traders community. There are many such routes to escape, legally...

Although, increasing lot size has no such escape.

 

[TraderGYO]

Let's find out ways to trade e-Mini's or SGX Nifty

As a resident Indian you can not do that. Thanks to RBI.

 

[headstrong007]

Most traders usually have at least 2-3 trading account with different brokers.
Is that possible for SEBI to track live cumulative positions using different brokers every day? SEBI is just making all things complicated.

 

[soft_trader]

Absolutely No Idea...

• No tax for individuals with income less than Rs 2,50,00.
• As most people in India fall in this group don't either pay taxes or file ITR
• I am eager to see the minimum exposure for such people. Only then probably we can get the idea of personal exposure by multiplying our income with it.

Sebi's move will ensure to open many accounts in the name of traders Father, Mother, Father in law etc etc. Now we can see 70-80 years old high net worth Grand Fathers are also trading!! (to protect younger peoples in their family from SEBI . A birthday gift for a student may be the access to a trading account in the name of father. SEBI/Govt probably underestimates traders community. There are many such routes to escape, legally...

Although, increasing lot size has no such escape.

What about opening multiple accounts with different brokers? Suppose a person is allowed to trade 1 lot as per his net worth, then he can trade 1 lot with different brokers simultaneously. Though managing would be tricky but it is a possible loophole for sure. And I am pretty sure that this will work as brokers does not have a centralized database to know whether a person is having an open derivative position with another broker in real-time.

 

[soft_trader]

Most traders usually have at least 2-3 trading account with different brokers.
Is that possible for SEBI to track live cumulative positions using different brokers live every day? SEBI is just making all things complicated.

What about opening multiple accounts with different brokers? Suppose a person is allowed to trade 1 lot as per his net worth, then he can trade 1 lot with different brokers simultaneously. Though managing would be tricky but it is a possible loophole for sure. And i am pretty sure that this will work as brokers does not have a centralized database to know whether a person is having an open derivative position with another broker in real-time.

Haha! we wrote same thing at the same time

 

[soft_trader]

Most traders usually have at least 2-3 trading account with different brokers.
Is that possible for SEBI to track live cumulative positions using different brokers every day? SEBI is just making all things complicated.

I am fearing increase of lot size much more than income based limit.

 

[headstrong007]

I am fearing increase of lot size much more than income based limit.

It's easy to implement. SEBI already increased min contract size from 2lakh to 5lakh. Currently, most contracts around 10 lakhs already.

The most irritating fact is, SEBI don't bother about liquidity in F&O. SEBI clearly want to shift the volumes from F&O to CASH by any means. So the large-scale protests are needed.

Previously protest against high STT on exercised options was successful. So I am still hopeful as this type of regulation is going to hurt small to big all types of F&O traders and all discount brokers too.

 

[soft_trader]

It's easy to implement. SEBI already increased min contract size from 2lakh to 5lakh. Currently, most contracts around 10 lakhs already.

The most irritating fact is, SEBI don't bother about liquidity in F&O. SEBI clearly want to shift the volumes from F&O to CASH by any means. So the large-scale protests are needed.

Previously protest against high STT on exercised options was successful. So I am still hopeful as this type of regulation is going to hurt small to big all types of F&O traders and all discount brokers too.

We can only hope for the best as of now.

 

[headstrong007]

Good News, protest from brokers already started.

https://www.livemint.com/Money/b73S...-decision-to-make-them-responsible-for-r.html

Brokers are considering to send a representation to the regulator saying that the regulator’s proposal is impractical and unfair. They said that this will make the broking business which is struggling under low margins even less lucrative.

Unfortunately, mainly BSE group of brokers are supporting it. But NSE group brokers are not the weak force at all, new age discount brokers get major F&O volumes from NSE.

 

[vikas2131]

Good News, protest from brokers already started.

https://www.livemint.com/Money/b73S...-decision-to-make-them-responsible-for-r.html

Brokers are considering to send a representation to the regulator saying that the regulator’s proposal is impractical and unfair. They said that this will make the broking business which is struggling under low margins even less lucrative.

Unfortunately, mainly BSE group of brokers are supporting it. But NSE group brokers are not the weak force at all, new age discount brokers get major F&O volumes from NSE.

there used to be pro NSE lobby.. wait and see what happens ..