This is really bad for smaller investors. Liquidity will go down significantly. SEBI always meddles with non-problems. In fact, more stocks should be included in F&O
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decay would be on the %. For those trading ITMs, wont matter. Option buys are not supposed to be carried over or averaged. Itâs a quick entry, quick exit if naked. Or hedging contract. Liquidity will ensure sensible players who understand technicals or strategies are around and not gamblers whoâre here for herozero or buy DAILY LOTTOs. Dream11 or Poker baazi pushing the overall volumes. As of now more buyers are losing money due to sidewise markets than directional. I presume, this move will have more directional.
However, itâs interesting to note that SEBI initially broke down the lot size to enable affordability and now increasing. Theyâre doing real time experiments for benefitâŚwhoâs? I donât know. But this will benefit or wonât matter for seasoned traders.
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Dhirendra Kumar writes
Derivatives trading is ruining a larger and larger mass of people. The time to treat it as nothing but gambling is right now.
https://www.valueresearchonline.com/stories/201593/indias-gambling-industry/
See i think the Mutual fund managers just want people to invest in their company , so that the money keeps flowing in and they make tonnes . He quotes from Warren Buffett , hasnât he ever lost money ? he trades derivatives too , plus when Dhirendra was asked on a Bse conference that warren buffet says to invest on a Index fund why should we invest on a mutual fund ? kumar fumbled and gave a reply thatâs not at all convincing . He has vested interest in saying derivatives a gambling .
Can anyone tell me what is the success rate of US traders ? is it more than 90% ? i guess no
Just because we are a large country our volumes are Huge thatâs it
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It shouldnât matter for serious investors/traders, agreed
He is just trying to get people to visit his MF site, this is a hit piece. Derivatives are important instruments for a portfolio
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It is all about narratives and who controls them. Taking a few examples below:
a) Dream 11 has 21 crore users. What %age of these users would have made money making teams on Dream 11 on a net basis (can we have that data as well before the government jumps in to save the retail traders)? Why does no one want to save these users. Making teams on Dream 11 is a game of skill but trading in derivatives is gambling. In comparison, the number of retail derivative traders is close to 1-1.5 cr and everyone wants to save them. And if derivative trading means diverting capital for unproductive uses, how is betting on teams in dream 11 productive capital?
b) LIC has close to 30 crore policies in force today with a majority of them âlife insurance + money back policiesâ (not âterm insuranceâ). Any person with decent knowledge knows that these policies offer much inferior XIRR as investment products and do not even provide adequate life cover. How many times have we seen the government jump in to protect these retail policy holders or at least spread financial literacy.
c) On valueresearch: Quoting Warren buffet in the article while selling stock recommendations to beat the âmarketâ seems hypocritical at the very least. Did he miss Warren Buffetâs other statement âA low-cost index fund is the most sensible equity investment for the great majority of investorsâ
Someone / some group higher up has decided that they donât want retailers in derivative segment (for whatever reason or conspiracy theories that one can think of) and all the narratives are being laid out to justify the same. As a group, we can do precious little apart from cribbing on these forums and adapting to these changes (or if you can afford, shift to a more business friendly geography).
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He dont know basic diffrence between gambling and speculation .he just take adds from mutual fund houses and print a bulshit magine by presenting same data in diffrent way .
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Hey Traderâs whatever recommendation are given by the experts formed by the SEBI committee will be now discussed by secondary market advisory committee which includes stock exchanges NSE & BSE with CEOâS of major brokerage firmâs like Zerodha , HDFC and all.
So now everything depends upon the Secondary Market Advisory Committee to decide on opinion forwarded by Experts committee of SEBI so now it all depends upon people like @nithin and NSE BSE chairman to think upon.
Itâs like a loss making situation for them also because it could lead decrease in volume which badly affect the revenue and profits of all the brokerage firmâs and as well as that of exchanges also because theyâll loose the STT and exchange transaction charges they get.
So we should now just pray for better things from these Menâs as theyâre only hope.
An original skilled trader will get affected the most because only he/she knows how hard he worked to make the strategy and all to do the trading which is by far most toughest thing in the world as itâs not an easy way to earn money in the stock markets.
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I believe SEBI is not proposing to reduce no of indices with weekly expiries⌠they are suggesting 1 expiry per exchange⌠which means all indices of NSE will expire on the same day of the week
@BMohanty Not like that
first week is nifty
2 week is BN
3 week is Midcap nifty
4 Week is Finnifty
like that they recommended
I see⌠its even worse 
At least I could trade BnF every week till now⌠going forward Iâm kind of forced to trade in indices I donât trade
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And if a month has 5th week ?
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God i hate this SEBI so much, I am so jealous of the US. These people are trading the most random products, yesterday I got to know there are lumber f&o contracts in US, but here they canât even see a few products getting big volumes. Question- Is there by any chance that changing the government will change SEBIâs ideas or are they completely unrelated?
@Shaunsensei BJP govt will not allow any small people can make money in any format , in 10 years all people knows , they will support only big guys
SENSEX 
Though volume and open interest are very less, there is also Nifty Next50. By your interpretation of one week one expiry, Next 50 options will have to be discontinued entirely as there cannot be 5 full trading weeks in a month
No. The recommendation is âone expiry per exchange per weekâ,. NSE could as well have fortnightly expiries on Nifty and BN to fill the 4 slots of the month 
What about monthly expiry 
Hai there is 5 points panel has recommended to SEBI
1- Increase Lot size from 5 lakhs to 30 Lakhs ( In all Index and stock ) In nifty lot size will increase to 150
2- Upfront Full margin Collection in Option Buying - you cannot place second order until the first one is filled or cancelled - Option Buying will become costlier
3- only one expire per week per exchange
4- option strike price Rationalizing - means only limited strike price available
5- Illiquid option index or stock will be removed Immediately
6- other main thing is , lot of stock will go out from Colleterial list From August 1
In my Opinion market will become neutral -
option seller may have benefit to sell to make profit - option buyer a difficult life