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


Hello nitin does that mean, no job no trade bexause no tax, what about pplz doing this as a business?


In India, trading derivatives is treated as “business” as per Income Tax law. So debarring someone from trading in Derivatives does mean barring someone to conduct his/her legal and legitimate business …:right to work" is a fundamental right as per our Constitution… therefore it would mean directly infringing on citizens’ fundamental rights… in a court of law…I guess SEBi will surely lose…

just my view



Why don’t you take SEBI to courts if that is the case?.

I m sure your grandchildren’s grandchildren will win.


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


Has SEBI come with any update regarding this topic?


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.


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.

Sebi plans to cap our margin on our net worth

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.


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!


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.


Petition is here -


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