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

headstrong007

----- Full-Time ----- Day-Trader
yeah it could be right. One second option also could be possible. In US, a minimum balance(approx $25000) has to be kept in trading account for day traders(FnO).
Such rules could be brought here too. A minimum balance lets say 1 lakh to be kept in trading account for FnO trading.

Just-Trade
Rs 1 Lakh is too much for Indians as per India's per capita income.

India's per capita income (nominal) was only $1670 in 2016, ranked at 112th out of 164 countries by the World Bank. US per capita income about $58,000.
So even if we compare it with the US, in the same ratio, min capital for trading is $720 for India. Which is less than 50,000.
 
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vikas2131

Well-Known Member
Rs 1 Lakh is too much for Indians as per India's per capita income.

India's per capita income (nominal) was only $1670 in 2016, ranked at 112th out of 164 countries by the World Bank. US per capita income about $58,000.
So even if we compare it with the US, in the same ratio, min capital for trading is $720 for India. Which is less than 50,000.
It will be 5 lakh minimum for sure..
 

Hema123

Dream Believe Achieve
The Tea industry of Assam is more than 180 years old, but the initial days, tea cultivation was quite colonial in nature and this was limited within the influential classes (Like Institutional Trader/Investor) and not permissible to common people (Like Retail Trader). Cultivation of tea on virgin soil, subject to fulfilment of certain conditions such as proof of ownership of land and size of the holding on which plantation of tea is proposed, proof of suitability of soil for cultivation of tea, proof of financial soundness etc. -- all these restrictions stood as hurdles to the growth of tea cultivation on small holding. This stigma remained with local people more than 150 years and deprived the whole indigenous community from the tea industry and they became the silent observers of the growth and development of tea industry of Assam. After several years of ANDOOLAN, against the REDICULOUS OLD BRITISH RULE, finally the Government of Assam allowed the local people to open small tea gardens by abolishing all the barriers relating to the growth of this sector. At present there are more than 800000 Small Tea Garden in Assam with a total land coverage of 2,10,000 acre; contributing nearly 35 per cent of the total tea production of the state and growing day by day. Assam alone produces more than half of India’s tea production.

Indian Share Market has huge self employment potential like Small Tea Gardening of Assam -- LEKIN, YAAHA TO SAAB-KUCH ULTA HO RAHA HEIN.

Any rule should be simple and favourable for common people first, not for institutional. If you are unable to open an alternate feasible livelihood to common people, at least, don’t try to shut the present door, which was not gifted by you; don’t deprive common people as like British.

By constitution, our Gormint is “of the people by the people for the people”, but now a days it is like “of the Institutional by the Institutional for the Institutional” – Bhaag chaale aam-admi – Tere liye POKDE beshna kaafi hein.

 
not taking sides here. the solution could be like students during their study should not be trading. let him learn and do demo or small quantity trades in the meantime not to loose focus on studies. its ok to trade once the person gets settled in life properly and think about trading.
student takes parents hard earned money and does "gambling" because everyone know it will take years of screen experience to master this art.
 

headstrong007

----- Full-Time ----- Day-Trader
@atma_sakti,
Already, moral policing is on the rise during recent Gormint. Pls don't encourage such thought. :oops:

Nowadays many college students have side income by the private tuition of junior 8-12 students.
No smart parent usually give them money for trading. Mostly, usually, it's their small savings or pocket money, their hard-earned saving they are using for their dreams to become financially independent!

************
Presently am a successful day trader only bcoz, I started trading @very younger age when I was a student. Persistence is key in trading/investing. With hot young blood, our passion and risk appetite is high enough to give us persistence.

Starting early is the powerful key to investing/trading as it takes min 7-10 years to get success here.
Risk appetite can be defined as the willingness of an investor to bear the risk. An investor's/traders appetite for risk decreases with age. A young unmarried investor/trader like a student may be quite aggressive. Also, passion & willingness to fight for something runs high in this age. Moral policing is the last thing younger generation required!

If we see the history of few successful traders in the world. We can easily find almost all legendary traders come to trading @younger age and trading was their first profession.
 

TraderGYO

Well-Known Member
not taking sides here. the solution could be like students during their study should not be trading. let him learn and do demo or small quantity trades in the meantime not to loose focus on studies. its ok to trade once the person gets settled in life properly and think about trading.
student takes parents hard earned money and does "gambling" because everyone know it will take years of screen experience to master this art.
Infringement of personal rights, students who are old enough can choose what they want to pursue as their career. And also a general category student should know the truer story.
 
guys no doubt we are sharing our genuine grievances on this forum but this is restricted to ourselves and makes it somewhat unproductive. Can each one of us also share our feeling on the Namo app(write to the Prime Minister). so that at least we are sharing our grievances with the PMO which has the power and rights to intervene. This is the least we can do.

If you all like the idea then Lets start a campaign and request as many traders as possible to share their thoughts on namo app. (Request-Please be mindful of your language while writing on the app)
 

maneverfix

Well-Known Member
IMG-20180401-WA0004.jpg
 
I guess this decision would go through if we keep blaming govt or pointing fingers towards SEBI. The discussion paper was out last year and SEBI did seek public opinion about limiting retail participation in F&O. Whether they cared for our opinion or not is a different thing, but how many of us really gave feedback last year ? How many of us have cared to reach SEBI, PMO thru relevant forms at least now? Do we want them to dig into our minds and find out, what we think?

I request everyone to reach SEBI at [email protected], PMO thru https://pmopg.gov.in/pmocitizen/Grievancepmo.aspx etc, reach out to traders with 5k+ followers on twitter and tweet to PMO, SBI, finance ministry (dont tweet trolls, tweet sensible points), lets give a try at least. Previously the govt did revert their decision of taxing PF, when there was public out cry. Don't be a troll of the govt, take action.

Previous year when Ktaka govt increased stamp duty on trading and removed the max limit of Rs.50, it affected me drastically, as am a scalper. Unfortunately, not many were worried. Now, many more are affected and I believe many would be against this decision

Few points I could collate :
1. Explain how it affects you, if you are a full time trader
2. How trading is business for some
3. Explain the nuisances like how option premium is calc
4. Without traders how would the price discovery happen, where would be liquidity, how would investors hedge their risk without counter-party, would the mkts be efficient? 10k crore STT, several crores STCG, brokers, exchanges survive, there would many Indirect beneficiaries as well like hardware, software, broadband etc to name a few.

Few steps I could think of-
1. Not all retail traders are aware of this decision yet - We need to create awareness, so that we can get their support as well
2. Be ready with our concerns/ points when we reach out to brokers/SEBI/exchanges
3. Tag News channels, SEBI, PMO, use hashtag while tweeting - create buzz, make our voice by heard in all this noise
3. Wait for the actual details to be revealed
4. Seek legal opinion?

P.S : Am a full time trader and share the same concerns as others here. But the way we are disorganized, I dont see any result oriented thing happening.
 
Someone can draft a CHANGE.COM petition and then we all contribute our ideas to it to give it a final shape, Also put our views in Narendra Modi app and make our concerns heard and felt. Request our brokers to send their representations also .

Use a proper language and put forward logical arguments and reasoning..not criticism,hate posts,let us present the case on financial and economic reasoning and not get into congress-BJP politics. Criticising the decision amoungst ourselves will not have any effect. Brokers and Stock Exchanges will not be of much help as they are scared to go against SEBI.

Smart_trade