SEBI's new move to cut retailers participation in F&O!
- Thread starter headstrong007
- Start date
No, but I have questions regarding how they are implementing said rule to "Protect Retailers".
First question if 50% of net worth is allowed as an exposure limit then would that also include SL(should not require extra margin for this order) and Profit taking order margins?
Second question Suppose a client with low net worth is forced to take options positions and he/she tries to square off positions by placing sell orders. But unfortunately May 24 like NSE NOW incident happens and sell order get replicated and can not be cancelled(https://www.thehindubusinessline.co...errors-due-to-tech-glitch/article24672200.ece). In that case the risk management system has gone for a toss. Will this SEBI rule ensure the client will be protected in such scenario after-all clients were trading with a size that SEBI deemed safe!
First question if 50% of net worth is allowed as an exposure limit then would that also include SL(should not require extra margin for this order) and Profit taking order margins?
Second question Suppose a client with low net worth is forced to take options positions and he/she tries to square off positions by placing sell orders. But unfortunately May 24 like NSE NOW incident happens and sell order get replicated and can not be cancelled(https://www.thehindubusinessline.co...errors-due-to-tech-glitch/article24672200.ece). In that case the risk management system has gone for a toss. Will this SEBI rule ensure the client will be protected in such scenario after-all clients were trading with a size that SEBI deemed safe!
Just think it deeply you'll understand.
People always hope for the best, even in the face of adversity.
India has more than 50% of its population below the age of 25 and more than 65% below the age of 35.
The number of people in India especially the youth is increasing rapidly in the last few years. But there is not enough job creation happening. Inflation is rising but not the salary in a proportionate way.
People are in desperate need of alternative income. Small traders, college students, job seekers, unemployed youth or people unsatisfied with the present job or business are coming to stock market trading with their small savings for the hope to earn money.
People always hope for the best, even in the face of adversity.
India has more than 50% of its population below the age of 25 and more than 65% below the age of 35.
The number of people in India especially the youth is increasing rapidly in the last few years. But there is not enough job creation happening. Inflation is rising but not the salary in a proportionate way.
People are in desperate need of alternative income. Small traders, college students, job seekers, unemployed youth or people unsatisfied with the present job or business are coming to stock market trading with their small savings for the hope to earn money.
2 questions :
1. Have you seen any business that does not operate ( at least during the startup phase ! ) with leverage? Also for purchases like Auto, Home, 2-wheeler, Commercial vehicle,consumer durable, Credit card etc...? Does the world run without leverage?
2. Few years back, SEBI started something like Certified trading advisor and started a registration process for people who gives away 'trading tips'.... what has changed since then? Is SEBI underwriting the losses traders are making following the 'tips' being given by these "Certified Tips providers" ? if not what goal SEBI has reached by adding another set of paperwork ?
1. Have you seen any business that does not operate ( at least during the startup phase ! ) with leverage? Also for purchases like Auto, Home, 2-wheeler, Commercial vehicle,consumer durable, Credit card etc...? Does the world run without leverage?
2. Few years back, SEBI started something like Certified trading advisor and started a registration process for people who gives away 'trading tips'.... what has changed since then? Is SEBI underwriting the losses traders are making following the 'tips' being given by these "Certified Tips providers" ? if not what goal SEBI has reached by adding another set of paperwork ?
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A networth certificate if you are travelling abroad costs 18,000.
Maybe discount brokers should start providing clients certificates using in-house CA @ Rs 5000. That would offset their loss of revenues
So, basically a small investor who just wants to buy a Put Option to hedge his portfolio before elections has to first spend Rs 18,000. Only then will he be allowed to hedge his small investment!
Maybe discount brokers should start providing clients certificates using in-house CA @ Rs 5000. That would offset their loss of revenues
So, basically a small investor who just wants to buy a Put Option to hedge his portfolio before elections has to first spend Rs 18,000. Only then will he be allowed to hedge his small investment!
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