New F&O Margin Regime is Debilitating

I mostly sell Bank Nifty options and these new margin rules have cut my position size in half; It is unfortunate that SEBI couldn’t bear to see our Bank Nifty Weekly Options flourish the way they have since their launch.

They saw trading volumes surge and brokers & traders making money and want to be paid themselves: they just want to be lobbied and bribed by the broker’s association.

In any case, I hope they revert to the previous margin regime once they are done waving their sticks.

2 Likes

Heavy allegations!

Don’t you think the derivatives market is highly leveraged in India and needs cleaner regulations. Physical delivery for instance?

That being said, I totally agree that SEBI should work towards reducing lot size to allow F&O to do its actual job of hedging portfolios of small traders’ portfolios.

1 Like