Hi,
Please anybody could advice me about, buy in current month future contract and sell in next month derivative or MCX future contact. Will it come under Circular Trading?
But I hope, the brokers has filter or validation for the offensive trading orders from retail investors. Posible please give SEBI guildlines regarding offensive trading practices.
Kind Regards
Rajagopal
No , there’s nothing wrong in it. It is just a calendar trade with futures.
Its Calendar Spread, these are normal practices in derivatives.
Circular Trading is totally different from it, its an fraudulent act with clear intention of price manipulation.
In regard to regulatorz guidelines for the Fair Market Conduct, unfair trade practice includes any practice of fraudulent manner dealing in securities directly or indirectly to manipulate price, inflate/deflate/fluctuate the price, or creating any misleading appearances of trading, etc