Hello,
I just read that we will be allowed to invest in US markets soon. And I also read that we will not be allowed to buy or sell options in the US market due to some 20 year old rule.
My petition is that @nithin should try and convince RBI to relax its rules. It should be an individual’s choice what they decide to do with their money, and not of some regulatory body’s.
Thanks 
Go get yourself educated about the fundamentals of economy and governance… Feeling pity about your general knowledge…
RBI has nothing to do with rules and regulations of the US market.
@Raz FEMA is a regulatory mechanism that enables the Reserve Bank of India to pass regulations and the Central Government to pass rules relating to foreign exchange in tune with the Foreign Trade policy of India.
Get yourself educated first dude.
@Raz is right. The government cannot allow outflow of money for the purpose of speculation. Naturally that money would be lost to the US, further weakening our economy in comparison to theirs.
hmm…
Like others mentioned, our country can’t afford too much money going out of it. That is the reason things like Gold bonds (to avoid the import of gold due to which money moves out of the country), and 5% Tax collection on the source on foreign travel and purchases have been introduced.
If I was running the country, maybe I wouldn’t allow for it to happen as well, at least in the current state of our economy. So while I understand what you think should be allowed, but I don’t know if it is is really possible now.
Why can’t SEBI just allow Indian Bourses to get license from foreign bourses and introduce FnO in India itself.
Also 24hrs forex!!
If Nifty can be traded in SGX, why can’t other way around?
There was Dowjones futures etc, never picked up because our markets were closed when they were open. 24 hours market is what needs to be first solved for. My gut says that in the next few months index futures might trade longer duration. If it does ,then maybe other market futures will also get activity.
If that happens, how would that impact option premium pricing ?
Also @nithin Do you feel this newly introduced reduced margins for overnight hedged positions too might go away as and when it becomes more and more popular with retail traders ?
Like how straddles/strangles and option selling became more and more famous with a new breed of retail traders doing it, the intraday leverage now is going away, same might happen with overnight hedged position margin benefits as well ? Simply because ROI has improved tremendously for various strategies that retail traders do and these paid workshops teach.
Nithin,
Tax has been found to be the biggest destroyer of wealth over time. If the country taxes people to death, they will eventually move out. This is what happened to Rome, people just left their properties and went elsewhere. Today, you can see this in California even.
Back home, we have a bigger issue. Corruption. Until we reduce that, our country will not become the super power we so hope. Not to divert too much, reminds me of this ode to tax…
Tax his land, tax his bed,
Tax the table at which he’s fed.
Tax his tractor, tax his mule,
Teach him taxes are the rule.
Tax his cow, tax his goat,
Tax his pants, tax his coat.
Tax his ties, tax his shirt,
Tax his work, tax his dirt.
Tax his tobacco, tax his drink.
Tax him if he tries to think.
Tax his cigars, tax his beers,
If he cries, then tax his tears.
Tax his car, tax his gas,
Find other ways to tax his ass.
Tax all he has, then let him know
That you won’t be done ’til he has no dough.
When he screams and hollers,
Tax him some more.
Tax him ’till he’s good and sore.
Then tax his coffin, tax his grave.
Tax the sod in which he’s laid.
Put these words upon his tomb,
“Taxes drove me to my doom.”
When he’s gone, do not relax.
It’s time to apply the inheritance tax.
Long trading hours means more time value, so theoretically the option prices should be higher.
The new margin system is here to stay.