Everyone have their ideas regarding SEBI’s decision to use networth for capping margin. This is my idea. We start a goup, create awareness about it, as much as possible and abstain from trading for one day or may be even a week for greater impact.
Lets see what happens.
Just like banks call on strike and suspend banking services.
Lets do a strike for a week against trading. It is for our own good after all (according to sebi).
But before we do this, maximum number of people have to take part to make it effective. Make stocks illiquid to trade, make them untouchable, no trade means no tax as well. Lets see how government responds to this.
Right now I am really really mad at this decision of SEBI, if it gets implemented.
We (retail traders) constitute 50% of market share so we will definitely make an impact if we act together.
The date should be minimum 30 or 45 or 60 days ahead so that enough awareness among investors is created about it. So that even those planning to do a trade will abstain from trading because they will know that market participation from retail traders will be very low or nil.
From long back , i was writing on Trading Q &A about blunders of SEBI and its board members , with their " communist mindset" and becoming mad , determined to drive away retail traders from the stock market , Instead of –
use social networks to draw attention of " politicians " / political parties , its a high time of parliamentary election ahead , so voice of retail traders can be heard by policy makers , one last chance ,otherwise , with stock exchanges and stock brokers on their side , no body can stop SEBI to do blunder things.
Please let us not complain and protest. Also not tinker with the idea of abstaining from trading. The rule is not yet effective. There are numerous die-hard traders amidst us who cannot resist the impulse to trade. It is impossible to resist the lucre of money. How many will be able to resist the urge to make money ? Agreed if a lakh of persons stay away from the market there will be another couple of lakhs to fill the vacuum. The voice of protest will not be heard in the cacophony of bid and ask when the market opens. Only when the revenues and livelihoods are affected and hurt the revenues of the Government then the policy makers will get alerted. Let us not waste creative energy.
We don’t need to worry about those who will not support this protest but only those who would support us. If there is large enough number of supporters, it won’t matter if other half decide to trade because there will not be enough volumes for them to execute trades. As noted elsewhere in the forum, the bid ask gap will increase, liquidity will take a hit. Those deciding to trade will only hurt themselves, if they do.
Soon they will join too. May be they will curse us for this protest, but they will join.
So if you are interested, then join, else continue hurting yourself… Or maybe you are one of those sitting on the top of margin excess and so you don’t care about others…
A professional knows what one is doing as they put their money where their mouth is. We may have got Independence by protest and raising slogans, but in the current times this will not help. There are numerous traders on this forum who are beginners and are not familiar with the ways of the markets. What SEBI is doing is to save itself from the role of being a protector by banishing them from the market. SEBI wishes to play the role of a regulator.
I am sorry but, only people can decide what they want. You mean to say there is a system so those who are capable of doing MSc. at the age of 13 should be banned because others cannot clear even their 6th-7th class by then?
Failure is a process of learning, if you want to secure failure rate, it means you are denying people the opportunity to learn. If they do not learn, they are slave to the whims and fancies of the regulator.
Just like the old times of Raja-Maharaja and Jamindars of India. It will only produce outlaws like those old times. But this time these outlaws will be equipped with hardcore technology, laptops, computers and the internet.
Veer Bhagat Singh had said, Sometimes you need to make a loud noise to make yourself heard. Government is and has always been like this. Unless there is large enough noise, it don’t care.
Take any public case and you will see that what I am saying is right.
I follow the marketing wisdom, If the child doesn’t cry even mother won’t feed him milk. So that is the whole point of my protesting. To get our voice, our concerns across to SEBI and the Government. If they don’t know, they WILL NOT act.
This is how a protest must be. Gandhigiri ! This is like having our own union.
If we can agree on a date, I promise I will not trade on that day. I can stop trade for a week also.
The lucre of money is irresistible buddy. Familiar with dark pools ? Why ‘slit our necks’, by not trading for someone who is not well versed in making laws. The rule is not in force as of this moment. Let’s not be gloomy.
Brokers are very much opposing this move. But in their way. @nithin has mentioned this so many times in this forum. They are doing their bit. Because it will affect their business also.
It is good that I am not well versed in making laws, else I would have been in full support of SEBI as it is the one who is well versed and the brains behind this proposed rule.
Whether we protest or not, or even if are successful in staging this protest, it will still take much more to change the minds at SEBI. We are anyways doomed.
If SEBI has already sent papers to leading brokers about it, then it is only a matter of time, before it comes into effect. I guess I will invest all my money in roadside peanut vending, because after all government promises and declarations of development and improvement, they are still there, encroaching on government property and making ‘by foot’ commuters really uncomfortable.
I guess it does has more unshakeable future than investing in stocks.
