More curbs likely for index option trading - Times of India

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Their 2% ELM(since Dec 2024) has actually already increased 0dte margins by 30% in reality. I dont know what more these people want. I am not generally an angry person but i can feel something changing within me.

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These guys have gone completely retarded. They doubled the STT and then making pikachu face about why average loss increased to 1.1L. Next level retards.

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we need a retail traders association

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They are not fools, they are just plain disingenuous, insensitive and inefficient.

Disingenuous
not candid or sincere, typically by pretending that one knows less about something than one really does

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So many times i have heard that they want to increase cash market depth.

I dont think i have ever heard them talk of reducing/removing STT which is probably biggest barriers for traders. Even HFT/market makers would probably need higher margin to manage costs.

who knows, It might be a job hazard for them as no govt wants to give up any existing tax.

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I can totally see the glorious future where we go full circle back to the good old BSE ring days — you know, when people actually yelled trades across the floor with paper in hand.

Given all the brilliant “developments” over the past 6–12 months, it’s crystal clear we’re headed there. Retail flow is going up, so naturally, I’m just waiting for the grand finale — they’ll curb F&O, and if retail dares to start buying equity, well… why not have SEBI ban that too? Problem solved, right?

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Pandey and FM Tai both have lost their mind, raising stt and moving expiry to fortnightly.

Raising STT is just plain greedy, the money for freebies has to come from somewhere.

They acknowledge that even among the profitable traders, half the profits are eaten up by trading charges (which we know is 50-80% STT).

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SEBI is in talks with Finance Ministry. It may consider reducing the cash market margin requirement and also bring out a consultation paper on discouraging options speculation.

It wants the government to nudge people towards investing rather than punting. To do so, SEBI may ask the Finance Ministry to reduce Securities Transaction Tax on cash market transactions.

What if they flip STT viz cash market ↔ derivatives?

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@nithin
Earlier you said, “Don’t trust everything you hear or read.”
Suppose that’s true, and all this is rumors, but stocks like BSE go down 5% due to this news. Isn’t it something wrong?

The market reacts to rumours :slight_smile: I don’t think anything should be made of this until the final word comes out of FM’s mouth regarding STT or through SEBI’s mouth about stopping weekly.

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My point was, is there no responsibility of news channels while reporting from sources when it can wipe out 5-10% of a company’s market cap? Is that circular of SEBI to reply to rumors in 24 hours for listed companies not implemented yet?

I trust this words and also trust like you said earlier “You can’t believe everything you read.”

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Hope this holds true

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@nithin

Rather than throwing the baby out with bathwater cant SEBI do some real regulatory steps to shift the volume to longer term options of cash market

I am a small trader who always look upto you but I have some good suggestions if you can put up it SMAC meeting

  1. Removing the requirement of Cash component, so that people can go from short term options towards longer term options / overnight positions rather than just punting, since people will be able to utilise their shares and this is risk free since shares will be pledged with appropriate haircut

  2. Even if a single day is given as expiry in the week, as was happening before 2023 it will also help (pls also suggest keeping bank nifty)

  3. Many countries have launched 0Dte and many yet to launch in 2026 eg hongkong and south korea

  4. I read your article of US having deep gambling and cannot agree more, and also agree comparing our apple with their oranges is not correct

5.For option sellers we can have a networth criteria and for option buyers we can have an income criteria (since educational criteria is not possible, we’ll refrain from it)

  1. Also if we can have weekly stock options which will further reduce concentration risk only on two indices

As I said I am just a beginner not a pro like you but as you are in the prestigious SMAC committee, Humbly request you to take these points and save our trader community as well as broker and exchange community

Nothing is risk-free in the markets. :slight_smile: Every ten years, there will be a day when haircuts are useless.

:slight_smile:

Yep, this is something that has been pitched. Only a certain portion of the networth/income for option buyers.

I don’t know if more weekly is the way our regulators are thinking for now.

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If this happens , i will be the first person to stop Trading in FNO :slightly_smiling_face:


Why the govt and sebi is directly and indirectly leaking news about restrictions in F& O for retail traders?
Do the govt love retail traders and care for them so much that they want retail traders to invest instead of trading and improve wealth?
No
Why because if they want retailers to invest more they would not have increased capital gain tax.
So what is the problem, indian people want to grow rich, naturally after paying taxes they will each find their own way.
But Why after getting the giant share of peoples earnings as tax + gst, the govt still wants to control what people do with their own money?
It is because the govt wants people i.e retailers to put money in banks , the deposit in banks is at a alarmingly low level, the govt wants middle class to pay tax , and if they have any savings park it in bank, and get the crumps , dont aim for more,
i.e trading and investing is for the rich guys ,u middle class ur role is nation building pay tax and park rest of your money in banks, dont ever dream of becoming buffet or jim simons, i.e only for the rich. Jai hind

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