Hi Nitin,
so does that mean options bull/bear spread will become most profitable strategy considering net margin?
Thanks!
Please, please read the post, answered the same multiple times.
It is a phased implementation. There is plenty of time to adjust our trading systems to new regulations(or identify new systems) . I think this panic is a bit over blown. Risks associated with changes in rules and regulations are part of any business. Think positively, we can adapt and grow. Everyone just chill. 
Not allowing a person to use own capital for business is unconstitutional. I think you should reach the courts of law asap.
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Nithin sir may I know your opinion on my comments
I know but people are confusing me.
I just want to know VAR+ELM going to increase to 100%.
Yes.Zerodha giving 50% VAR+ELM which will increase to 100% so leverage will reduce by half.
https://zerodha.com/marketintel/bulletin/249809/latest-intraday-leverages-mis-bo-co
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Haha right the way you put it makes sense, how can the regulator not allow businesses to use own capital
these rules will be applicable to retailers only ? or PMS services firms will also be under its cover ?
For everyone. Btw PMS (SEBI registered) firms can’t really do intraday trading. So it won’t anyways matter.
Thanks for info…
But I can c ZERODHA blocking more margin for Overnight vs Intra while placing trade on “Short Strangle”
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Sir, can broker fund there client from broker own capital to an extent ? Or do you think that there will be some changes in this circular in future, Broker association will take a stand or not?
@nithin what do you guys ( brokers association ) think are the chances of finding middle ground with the regulator? How likely is it that reasonable MIS leverage will stay?
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Offcourse margin for Overnight position will be more as there isn’t any leverage offered, for Intraday when you trade Short Strange using Intraday Order types (MIS, CO, BO) you get leverage and hence require less margin.
If you didn’t understand, let me explain it again for you.
Under new rules, you won’t get any leverage for using Intraday Orders (MIS, CO, BO) for trading Short Strangle, and margin required will be the same as it is needed to trade Short Strangle overnight.
Sir, can broker fund there client from broker own capital to an extent ? Or do you think that there will be some changes in this circular in future, Broker association will take a stand or not
Read this.
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Sir, as of now for retailers like me, You are the only hope, Please mention this point in the meeting that if they are allowing continuely atleast min 25% of Span + Exposure as they are going to allow after Dec, this will also fine but please let them think about retailer who don’t have much bigger capital,
For your information, I’m actually struggling from last 4 years with 100% of my efforts just to learn every single point, now at this time I improved myself much and trading slowly because I have below 1 Lac capital,
After this decision if I will not be able to trade because I don’t have capital then what’s the use of my last 4 years ( You can’t even think, How much up downs are there including losses ), Then what should I do, Regular 9-5 Job, Then what about the dream for which I spent my day night before…
This decision doesn’t matter to Rich People as they don’t care about margin, It’s only going to matter the people like me, in Short what SEBI wants to prove here, Rich becomes Rich & Poor must stay Poor or Do Suicide because we don’t have any Godfather…
And after reading this, if SEBI is still with their decision then Please tell them to remove I from SEBI Securities and Exchange board of India
Because a true Indian always think about middle class first that rich people’s… & This is not " मेरा भारत महान "…
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and yet SEBI went ahead and did it anyway.
How do you think they can get away with this, if unconstitutional?
Emotions don’t play any role in reviewing/changing such regulatory decisions. There are many people like you who will suffer but that is not how we should object this decision by SEBI.
You have to present logical points instead of a personal emo story like:
- Not allowing brokers to fund their clients margin and therefore denying the right to implement varied business models to run their business.
- Loss in txn volume since retailers will be thrown out
- Finding some common ground where brokers don’t indulge in providing too much margin that they can’t afford
@nithin Do you feel this can be a very strong point of contention to make SEBI reconsider/modify this decision?