Derivative exposure based on Income tax returns for retail traders - Outcome from latest SEBI board meeting

Since, courts usually allow status quo till the case is settled. We may be able to trade till our grandchildren’s era :slight_smile:

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Has SEBI come with any update regarding this topic?

@nithin https://zerodha.com/marketintel/bulletin/187000/change-in-margin-policy-update-2
full value has to be maintained for fno…is this the ultimate outcome? or will there still be linking of income etc?
And essentially the above circular implies the end of leveraged trading, except in the case of intraday positions. right?

hmm… don’t think so. There is more to come for sure. This margin requirement bit is different. I am sure we will hear something on this in the next 6 months.

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Hi Nithin

Any subsequent meet with sebi since your last post here in May?
Any word on what they plan to do?

Can’t comment on when and what they will do. But something for sure will be done to establish a product suitability framework for trading derivatives.

@nithin Any idea, from when they are going to implement it ??

@nithin Will this apply to commodities and currency as well or is it only for equity and f&O.

Commodities as well.

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SEBI is working on product suitability, so derivatives will be allowed only for people who qualify to.

But it would be ridiculous if equity exposure is limited by income declared, education etc. Derivatives I get it, but if the idea is to limit equity exposure then real estate, gold, (all assets that can go down in value) etc also has to be limited.

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do option margins will be changed ?

Don’t know why the govt is hell bent on moving people away from equities :rage:
First LTCG and now this!

Now if they are going to become the Big Daddy Financial Advisors deciding where and how much one should risk/invest, why don’t they come out with a government bond guaranteeing 20% CAGR!

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@nithin
if implemented will this affect margins on Cover order Bracket order over equity segments and thus impact the ability to participate in intraday trading

May be we can wait till SEBI comes out with this officially.

i guess you know Steve Cohen ? He was charged of insider trading , still the SEC allowed him to trade because the SEC can stop someone from trading his own money…Now i dont understand one thing if SEBI is so concerned about us why don’t they tell us to sign a declaration that we know what we are doing . Really the stupidest regulator of all.

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Petition is here -

https://www.change.org/p/sebi-against-limiting-exposure-for-traders-in-financial-markets-freetotrade

Hey everyone …please take some time out to sign this petition and share it with other traders you know and who don’t want sebi to impose draconian rules on retail traders

35 supporters already :+1::+1::+1::+1:

This was for derivatives as per my information. Are they now working on to put restrictions on equity intraday traders as well? @siva @nithin

The news article claims so, but nothing to hint that from SEBI.

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