Not So Cool SEBI

Thoughts ?

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Indian markets will be dead

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Education is ok. Blanket bans, entry barriers etc are not ok. Its against free market principles which should be allowed to thrive atleast in the stock market.

Regulations if anything should ensure a level playing field for every one in the market - the rich and the poor. Simply put that would be

  • No preferential access to data in content or speed except for delays inherent in internet traffic.

  • No preferential speed advantage in order placement except for delays inherent in internet traffic.

If school / college drop outs can start business then the ordinary guy can trade in the stock market as well. The rate of success and failure is similar.

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@nithin
Excerpt from the article

" In June, Sebi had reached out to the country’s top brokers, asking them to furnish details of F&O clients, including age, income range, city and the profits made from trading in the segment in the year before and after the pandemic. "

Just curious , are we going to see some detrimental restrictions ? (Assuming you do know some information which we dont :sweat_smile: )

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SEBI is considering themselves as Gods off late.

It does look like they might take some action - may not be outright bans, but will probably reduce leverage for lower income groups.

Too much paternalism has crept into the market. Freedom is our birth right. Please don’t take it away from us :pray:

Both SEBI and traders are stubborn.
Neither SEBI will buy Trader’s view Nor Traders will buy SEBI’s take.
But ultimately SEBI is the boss and trader can’t do anything except cursing SEBI

So noob traders stop loosing money to institutions

Some initial brakes makes a lot of sense as people who have no idea what they are doing can harm themselves very quickly. Just has to be sane, allow people to fail too. Futures leverage has already reduced a lot, so i think this applies more to options now.

First they ended margin in derivative and now they are goona end derivative itself .
Parents like SEBI
Stock Market be like – ABBU NAHI MAANENGE

No matter what parents does, the child who wants to self destruct, crash and burn will find n number of ways to do so.

If not stock market, then lottery, casino, dabba trading etc etc. Its all about the person in question.

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Outright ban or high leverage on FnO will be a foolish move by SEBI . Instead, they can place a law that ,your account has to have at least a year of age to trade in FnO. That way you can block noobs from trading in FnO with excess leverage.
Why demolish the pen , just because you are writing nonsense with it !.

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Instead they can also ask clients to have minimum capital of say 2 lakhs / 3 lakhs for being eligible for FNO

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So that fools wipe out entire 2 lakh in one go

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What do you mean? If you have enough money you relocate to Mumbai and colocate your server in NSE for faster execution times and to consume better quality data.

NSE doesn’t “preferentially” give data to big players, if you have money and need you can also buy that. But the thing is do you need tick-by-tick data or under 10ms execution speeds? No. Not until you operate an HFT

@Raphael27 I was talking about bridging the gap between rich and the poor in stock market. Let the big players also play like the retail. Why they need special treatment especially when algo trades done by retail is big problem for the regulator ? Besides access to info before general public and profiting from it falls under insider trading even if bought by money.

We already had the collocation scam at NSE. Also fat finger errors are under scanner now. How on the world does a regulator ascertain that a piece of third party algo sitting on the exchange doesn’t go rouge intentionally or otherwise and put the retail guys money in jeopardy ?

Every year same discussion. Nothing happens.

retail has no business trading derivatives. good move by SEBI.
Want to become rich ? buy stocks and hold.

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Bruh