Kudos to SEBI, exchanges, brokers and people who were saying
“Zero leverage will result in improved stability for overall market.”
Also to those saying
“I’m not an option seller, Only people who gamble in the market require margin, new margin rule won’t affect me”
No one knows why some hyper intellectuals at SEBI and few brokers decided to go a different route than the whole world’s exchanges, who by the way are light years ahead of our market.
And pardon me because I am yet to hear one news article where they talk about a broker who got under because they provided extra leverage to a retail trader. Hell, they kill the position by themselves when the trading account decreases by 70-80 percent, what else in the name of protection did you need ?
Sebi is just a regulator, I am yet to hear one relevant party who supports this regulation.
- Not the ones who take the leverage,
- Not the ones who provide the leverage.
- Not the retail or broker associations
- No other country implements it. not even one major market.
Just one question then.. If nobody is supporting this then who are they claiming to protect by implementing such rules ?
If you say “it will decrease the overall risk in the market” then let me tell you how it decreases the overall risk by providing zero margin :–
- Margin penalty scam being run by brokers
- Liquidity is drying in the market where you already had very few alternates worth trading without the deal killer slippages.
- Abnormal moves are becoming a norm now. May or may not be because of liquidity.
- And when you thought you survived it all, I present you a new term “Freak trades”.
- Not to mention the bottom line in profit they killed in the exact same trades which require the exact same research just because of this “No margin rule”.
- And indulged in this discussion I hope you are not forgetting the challenges in trading itself.
Freak trades is one of many problems happened and will happen in the future because of such idiotic dictatorship.
SEBI and Exchanges should not expect roses from the sky when they are doing something so illogical, narrow minded and intransigence. You had the whole world and all the major global markets to learn from but instead these sarkari babus did what they do best. Play stupid games, win stupid prizes. Only contribution they ever make in the journey is putting pebbles inside your shoes.