Big daddy SEBI trying to save Indians

Why sebi is keep or trying to restrict retail indian traders from access to indian derivatives market by increasing the lot size? Do they think that indian institutions are not to give services to Indians but FII’S or do they think that bank NPA is increasing just because retail traders who borrow money from banks and investing in derivatives are losing money and are thus becoming defaulters? Or are they trying to protect the retail traders from losing money by restricting certain segments from their reach if that is the case then I think that no daddy will give money to his unemployed son and tell him to buy nifty call option to become a crorepathy rather they will advice them that trading is gabling, then why should sebi play the role of big daddy?? On one side govt is trying to remove red tape and on other side govt institutions are imposing new restrictions against Indians (oh sorry I forgot that govt is trying to remove red tape to invite foreign investers not Indian investers). Dear SEBI you are not probiding employment then why should you impose restrictions on those who find it on their on?

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Recently, Amazon is doing a better job at knowing what an Indian consumer needs.

It’s Time to outsource many of our public enterprise to Jeff Bezos of Amazon. Maybe he will keep majority of us stake holders happy.

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They will repeat this again and again. How do we stop them?

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SEBI is for HNI, FII and DII. They don’t care about retail investors.

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There must be a way for us to fight, may be we just don’t know it yet. Debarring retail participation is same as trying to promote monopoly which shouldn’t happen.

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There’s always a legal way to fight. But the legal procedure goes for decades in our country.

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SEBI is the Big Daddy, and it is doing its job. :slight_smile:

Before blaming them, let’s not forget that few years back, the Exchanges DID introduce mini-contracts (for NIFTY and other index) with smaller lot size, but the participation was way too less.
Additionally, see how many contracts are traded for other common indexes, like NIFTYMID50, NIFTYINFRA, NIFTYIT, etc. Even today (20Jan) when I am writing this reply, there are only 5 days to expiry for 25Jan, and no Option contracts are traded in recent days in these indexes.

So SEBI and the Exchanges are doing their bit (instead have done their bit) to increase the participation, but limited number of traders has been a problem to keep things viable.

It is absolutely true (and actually a fact) that F&O are “Weapons of Financial Destruction WFD”. Common Indian public is way too ignorant about their working, and their betting behavior with half-cooked overconfidence may ruin them financially. It is therefore a necessity to keep margins high, which is an effective way to prevent financial casualties.

A good discussion is going on here, please check the same:

I respectfully disagree. This amounts to snatching away choices from people and considering “Common Indian public” as fools who can’t discern what is good/bad for themselves. It’s like saying - Ban the sale of kitchen knives from shops as people who don’t know how to use them properly can cut themselves.

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Yea I agree that derivatives are WFD. When I started trading 8 years back, I started of with trading options and after a few winning trades it blew up all my capital. But now after gaining all the experience I seldom make such loss. I have a few friends who are into trading of late are seldom making any risky FNO trades. Zerodha varsity is helping them a lot in being responsible and informed. Rather than increasing the lot size ( which will not affect the HNI’s and affect only retail traders like me) are a clear case of discrimination. Rather than such moves they could empower broker’s to educate their clients like what zerodha is doing.

Possibly this will help you understand the game behind lot sizes.

It is not that lot size is always increased, but it is often reduced when the underlying index/stock gets higher in valuation. So it is a wrong assumption to make that SEBI increases the lot size. It is instead a standard for contract value to be kept around 2Lac. Read on:

I completely agree with you @iSTFF

Yes the lot size may not get increased for some contracts like that of tataglobal. But this move is largely against retail traders participating in FNO.

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If the SEBI care so much about retail traders, then why they are not taking any action on the manipulation in penny stocks. All the sms we get are from registered tele marketers. TRAI has all the information of the sender of such messages. Why is SEBI not charging these fraud companies? Oh yeah! It’s hard for them to get the details from TRAI :joy::joy: but it’s very easy to ignore big economic crimes happening in penny stocks.

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I don’t think there wud be restrictions on Index derivatives. On Stock derivatives, Sebi can argue, Why dont the same retail trader trading a 1000lot size stock future, trade atleast 500quantities in the same stock on equity market. Restricting retail traders in the derivatives market wud lead inflows into the equity market helping SLB market to mature. As the derivative market is tied to trading in lot sizes, it is prone to high risk. I believe Sebi is doing the right due-diligence in the derivatives market.

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Hello traders,
I couldn’t find freez limit for mcx / commodites futures…
What is it for crude oil, gold, copper… Is it all 100 lots?

See how much Retails investor friendly is SEBI

SEBI is only for " Elites"

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Hmmm, its two side sword. Small traders should not risk their money in Futures because they can’t hedge their positions as like bigger retail traders who do swing trades.

So why not introduce reasonable smaller lot size compatible for retail traders with limited funds. As because F/O allows for overnight shorts which is not possible in equities so F/O always is the first choice for a traders who wish to swing his trades for a couple of days. But yes its rather risky to trade such huge contract sizes that is currently imposed on F/O instruments.

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Right now only one side is winning and that is floor traders/market makers by courtesy of the SEBI .There is such a huge bid/ask spread in equity section that we retail traders are giving up our edge as soon as we enter into position.
They have no one competing with them and they are happy with it.

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