Retail traders community

[suri]

Exclusive: India regulator seeks curbs to limit retail investors' derivatives...

Hi
@ShubhS9 @nithin

What are the chances of getting implemented?

[Som_E]

@suri

What are the chances of getting implemented?

@nithin

I remember having this discussion with you in 2018, and 5 years later, here we are discussing the same topic again.

Its simple unfair & unacceptable to limit exposure.
Risk has always to be dealt with at an individual level for traders.

Ultimately, fools & their money are inevitably parted.
The govt cannot stop this!!!

Kindly put this across to your contacts in the Govt.

And I sincerely hope they’ll junk this ridiculous proposal!

Derivative exposure based on Income tax returns for retail traders - Outcome from latest SEBI board meeting

SEBI is working on product suitability, so derivatives will be allowed only for people who qualify to. But it would be ridiculous if equity exposure is limited by income declared, education etc. Derivatives I get it, but if the idea is to limit equity exposure then real estate, gold, (all assets that can go down in value) etc also has to be limited.

[TitanTrader]

@suri

https://www.reuters.com/world/india/india-regulator-seeks-curbs-limit-retail-investors-derivatives-risk-sources-2023-07-28/

Another scheme where only the rich become richer.

[nithin]

@Som_E

And I sincerely hope they’ll junk this ridiculous proposal!

https://www.sebi.gov.in/media/press-releases/jul-2023/sebi-at-an-early-stage-of-considering-simplification-of-the-process-of-on-boarding-of-clients-by-adoption-of-risk-based-approach_74617.html

This is with reference to some media articles speculating that SEBI is seeking to curb retail participation in derivative markets.In this regard, it is clarified that there is no proposal to curb retail participation in derivative markets.Currently, for trading in the derivative segment, SEBI Circular dated December 03, 2009(now incorporated underMaster Circularfor Stock Brokers dated May 17, 2023), inter alia, prescribesthat the stock broker shall have documentary evidence of financial capability for all clients.SEBI, in line with the objective of ease of doing business, is at an early stage of evaluatingif the aforesaid circular can be made applicable based on risk assessment of the clients. This would promote ease of compliance for brokersand investors. Further, SEBI’s focus has always been onadequaterisk management, while ensuring ease of doing business and compliance, rather than on placing any curbs on trading. It is reiterated that proposals which result in any change in the regulatory framework, go through a process of comprehensive consultation with all stakeholders including the public, before any decision is taken by the Board. MumbaiJuly 29,2023

I don’t think SEBI will do anything without putting out a consultation paper and considering everyone’s opinion.

[Som_E]

In the circular, they’re accusing us of speculating!
Well, we are traders after all!!!

[suri]

Proposal looks like lobbying more than best interest of everyone

[gaurav_choudhary]

what this can be ? ( in line with the objective of ease of doing business, is at an early stage of evaluating if the aforesaid circular can be made applicable based on risk assessment of the clients) @nithin