@pihu
don't worry, leverage is an essential part in trading. Education/knowledge may be the criteria not the net worth.
F&O trading is under business, it's our fundamental right to do business.
SEBI already increased the margin, now compulsory span +exposure. Exposure part is already for MTM loss.
Also, income tax return is NOT compulsory for the people under gross income of 2.5 lakh. So, suddenly they can't claim the last 3 years return.
Actually, this is Tax Terrorism by Govt. they want maximum return indirectly even someone is not eligible for tax. There is attached cost to file such return. for such small retail traders.
Also, pro traders with big volumes like me using very high intraday leverage. I have big capital in my account and 3 times NSE NFCM certificated. Growing capital continuously there is no risk. Still, they want to stop me too by illogical NET WORTH Rule. They kept HNI outside the list intentionally.
We can see, Aswini Gujral also trading with very high leverage. Pro traders also using high leverage, even more than retail traders.
So it will be challenged in court soon. We will take it to the opposition if required. Ruling party is not the boss of this country.
We don't want to reveal our true identity. We pro traders trading the market for more than 10 years also have power, money, knowledge, key relation to top levels and with other few big traders too and the most importantly the willpower to fight.
To fight the case, we just need a few confident traders who will share the cost. I don't expect thousands of traders will share the cost. Those who are really affected will come for their own interest.
In the outside world everywhere even beginners are using leverage freely. Somewhere with product suitability, they required min knowledge and minimum capital for trading which is only about 25-50k in terms of that countries currency. As far as I know, nowhere net worth is required.
And, here the SEBI prosal is only 40-50% of net worth for exposure when they are calculating even option turnover in terms of full contract value!
The base of that proposal: very high derivative turnover over equity was completely base lass. As full option turnover is calculated (prem +strike). We need to challenge at the base.
We don't know the actual intention. Options traders may not be safe as derivative turnover for the market is calculated based on full value (strike plus premium).
But, until Sebi come with finalizing such rule, we can't challenge it in Court. Let,s fight it directly where it matters... Only court can stop the illogical decision taken by Gormint and their associates! Be optimistic.
Typing too fast during trading, ignore printing mistake. Don't have the time to check.