Guys i am not referring to F and O. I also know some very basic terms
All i am asking is , is the product suitability framework applicable in equity cash segment? If yes how is networth arrived at? ITR? If networth is Rs 10 lac and my current holding with profit is at 13 lac should i have to sell 3 laC worth holding?
Don’t act oversmart. If u can explain in layman terms pls do it and help others.
If u cannot answer without arrogancy keep quiet
The whole scenario is Probably difficult for a learned retail market participant to contemplate.
The reality is MAJORITY of the retail stock market participants has no idea , what they are buying into.
They buy into false expectations of huge returns through stock market participation. They probably heard some rags to riches stories or seen the lifestyle of some rich investors in the media.
Now to make a quick buck, The ignorant market participant is in a vulnerable state to act based on someone else biased advice, be it a MF unit seller, brokers advisory dept, unsolicited sms advisory, paid advisory etc, etc.
They end result as we know is disappointment, loss of savings or failure to look after the welfare of the family members or to plan wisely for retirement during their prime age.
Now, The Stock Market itself is much bigger concept than the Regulatory authorities themselves. Regulatory Authorities of each country has to work within such limitations to maintain global liquidity of financial instruments.
Considering such limitations under which the regulatory authorities have to function, sometimes the practical option available is to stop the future victims from been exposed to such financial risks and ruining themselves.
On the positive side, the govt and the regulatory authorities have been pro active to encourage MF retail participation, which is less riskier than the circumstance discussed above.
Again, The whole scenario is Probably difficult for a learned retail market participant to contemplate and sometimes see such safeguard measures acting against their own interest. But we need to look into the greater good for the majority of the stakeholders through such safeguard measures.
Arjun wat are u talking…can we not invest in blue chips for long term on our own? I am talking of delivery equities not derivatives…
How many poor MFs invested in junk manpasand and vakrangee and bleeding in their NAVs?
And can’t we become shareholders of prestigious TCS or reliance industries durectly? Why it irritates big boys like u? Or TCS or reliance or wipro does not want 1 to 100 unit shareholders like us? If u guys make lacs in profit in futures why not we make in thousands in equity…what irks you guys the HNIs…
I.manage my funds better than a slow moving MF. We also study company statements.
U guys want these things as black box to us? Don’t worry we will not give up. We will challenge in court. And get a stay.
We should just hear buyback and life time highs with awe and be slave to bug boys? Never.
The market participation is already bad. If they cap that - a good majority of the trading crowd will vanish. I don’t see a strong reason for them to do it. So I wouldn’t believe this would happen unless it hits the mainstream.
There is no doubt such steps would bring down the trading volumes, so liquidity. As such our markets lack depth. Sure, everyone remembers the Emkay Flash Crash, wherein just a 650 Cr order could bring down the indices by about 15%. NSE could not stop trading at 10%, as per the rules. That situation is really scary, considering the market cap of listed shares should be at least 50 lakh crores, a wild guess, assuming RIL & TCS together are 10 lakh cr plus in terms of market cap. This should not be compared to the flash crashes of the USA, which is due to algorithmic trading.
In such a case, the regulator should work more in developing the markets, of course with sufficient safeguards, and not over regulating to the reduce the volumes, market participants, etc.,
An investor cannot stay away from FNO because its needed for hedging. Also, at certain times it not wrong to take leveraged positional position in markets using FNO when too much fear or greed prevail in the market
Below is pure guess. Not factual but afraid it may become factual in near future.
It may end up with that rule…obviously the sebi govt and corporates want equiry shareholders dividend etc to be reserved for hnis only. They encouraged shares investment but now all chottaa people have voting rights. They look for quarterly results instead of doing slavery account jobs. All this irks them
Slowly steadily they will implement this networth rule. We should not dream to become crorepathis. They will tie rope
Even when u produce a ITR for 25 lacs networth only that much exposure u can take. Funnily if ur profit doubles ur holding value exceeds networth. Then they will forcibly sell ur shares. It may be last in first out or first in first out when it comes to auto sell. Only thing is that strategy they have not finalized. Ie whether to auto sell the farthest purchase date shares or latest purchase date shares to reduce the holdings value back to 25 lacs. But their minstiries and income tax dept has brilliant ideas . they may suggest to sell latest shares to auto sell. That way u have to pay short term tax also. Now debate is if some of ur shares are in loss whether to auto book them. All this headache will come if ur holding value crosses max networth by way of profits.
Otherwise viswanathan and team has briiliant idea. If u have 25 lac networth just buy only 10 lac worth shares. That way by profits u will earn only pocket money.