Sebi on weekly options

[TradeB2B]

Manipulated the market by onle NSE chief he is in custody - All politicians and big Adani and Ambani those people only they are making more volatile market - if SEBI can Take action

[Jayadratha]

@Milind.K

Banning weekly F&O will be challenged in courts - its’ really none of SEBI’s business. This whole facade of “saving / protecting retail investors” is merely hogwash. SEBI just doesnt have the mandate to be doing what Ms. Puri alluded to (see VI below).

Wrong. SEBI was constituted by an Act of Parliament, not merely by executive order. It derives its authority from the Constitution of India. As a welfare state, India holds the sovereign right to protect its citizens’ financial stability. Consequently, if SEBI determines that weekly option contracts are detrimental to the financial well-being of its citizens, it possesses the authority to halt such contracts.

While individuals have the right to challenge SEBI’s decisions in court, it is likely that the judiciary will uphold SEBI’s position in this matter. This stance is based on SEBI’s mandate to safeguard the financial markets and protect investors, aligning with the broader constitutional principles aimed at ensuring public welfare and economic stability.

[Milind.K]

if SEBI determines that weekly option contracts are detrimental to the financial well-being of its citizens

How do they determine that? Losses from Options trading right? Simple challenge - how many of these losses are due to the heavy charges levied and authorised by SEBI?

it possesses the authority to halt such contracts

Not when India has adopted free-markets…these are products between a private exchange and private individuals. To deem an entire product class as speculative is non-sense at best and arrogant at the least.

it is likely that the judiciary will uphold SEBI’s position in this matter

It is equally likely that judiciary will quash SEBI’s position in this matter

This stance is based on SEBI’s mandate to safeguard the financial markets and protect investors, aligning with the broader constitutional principles aimed at ensuring public welfare and economic stability.

The notion that this is in any way being done for “Protection of investors” isn’t true. Rather, IMO, this is being done because SEBI is “Unable to protect investors” owing to its’ corrupt and inept nature. Nothing explains the numerous front-running operations, spikes before quarterlies, virtually daily pump-and-dump operations etc. running un-impeded.

TBH, It’s hard to believe there is a regulator at work in our capital markets!

[Jayadratha]

@Milind.K

Not when India has adopted free-markets…

Adopting a free market economy does not equate to relinquishing all state control. In reality, no country in the world completely surrenders its regulatory powers even while embracing free market principles. For instance, India, despite being a participant in the global free market, has not fully adhered to several World Trade Organization (WTO) regulations. Similarly, major economies like the United States, the European Union, and China also maintain significant regulatory frameworks and protective measures to safeguard their national interests. These countries balance market freedom with state intervention to ensure economic stability, protect local industries, and address socio-economic challenges.

[TradeB2B]

SEBI is more angry about NSE opening bell sound

One day SEBI will pull the bell From NSE and BSE - No need Exchange any more -bullshut sound

[RS6006]

@Milind.K

Banning weekly F&O will be challenged in courts - its’ really none of SEBI’s business. This whole facade of “saving / protecting retail investors” is merely hogwash. SEBI just doesnt have the mandate to be doing what Ms. Puri alluded to (see VI below).

SEBI | Securities and Exchange Board of India Act, 1992 (As amended by the Finance Act, 2021 (13 of 2021) w.e.f. April 1, 2021)

Seems like dude is killing it in markets

[rkrsna]

So according to you and SEBI ppl are loosing money in F&O only??? Not in intraday equity??

Gov and SEBI are concerned not about retailers looses but in overall picture the money in looses from F&O is going out of country

[rkrsna]

There are lot of other ways to do this

Two effective ways 1) ban P&L show from anyone
2) make virtually trading & certification compulsory for 2 yrs before entering real trading

Like this there were so many

Ppl who entered in F&O havnt dreamt of regulations, neither there is any awareness, who is SEBI? To waste time and money of ppl, 2-3 yrs efforts kept by others is just vain ??

[Arpan]

"make virtually trading & certification compulsory for 2 yrs before entering real trading " won’t help , because in virtual trading , one major factor is missing , there is no real money involved. Whenever real money comes into picture , psychology changes

[VijayNair]

@Arpan

Whenever real money comes into picture , psychology changes

Cars, Girls, Bankruptcy, Humiliation, Vanity, Dreams, Nightmares, Fear, Greed come into the picture, sometimes all at once…

No matter what rules you put, a large majority have to lose, that’s how it works!

[Rathi1]

Will prop trading firms solve this problem??

If retail will be targeted then may be separate ,small, groups of traders can band together to start prop firms as partnerships then how will SEBI see this?Is it still retail?

Will there be a distinction based on account value?

[Anil_Kumar16]

Exactly, you’re absolutely right

[nileshian]

Right bro, does that mean people dont make lossed in monthly expiry? Even people make losses in equity as well.
Why they ban weekly expiry, after loss of lacks we reatiler understand how to make profit on weekly expiry and now SEBI have banned this. Some peoples home run on this weekly expiry only, sebi have destroyed their homes. Sebi should restore weekly expiry again.

And goverment is so much interested in losses of common people why dont they are not closing gambling apps, cricket satta apps. These apps have destroyed many common peoples homes.

[nileshian]

I have filed following rti to SEBI, if any one have more points to add they can file their own rti.
Step to file rti to sebi

1. U need to go to https://rtionline.gov.in/
2. Submit request
3. Select ministry as “Department of Economic Affairs”
4. Select Public authority as “SEBI”

my rti

I request the following information under the provisions of the Right to Information Act, 2005:

1. Regarding SEBIs Decision to Discontinue Weekly Expiry:
   a. Please provide a copy of the report, study, or analysis conducted by SEBI that justifies the discontinuation of weekly expiry options in derivatives markets.
   b. Does SEBI have any documented evidence or data proving that investors are incurring fewer losses in monthly expiry compared to weekly expiry? If yes, kindly provide copies of the relevant documents.
   c. Has SEBI analyzed whether retail investors incur less losses in equity markets than weekly expiry like Midcpnifty? If yes, please provide copies of the reports or studies conducted.

2. Impact on Retail Investors:
   a. What measures has SEBI implemented to ensure that small investors are not disadvantaged by the changes in expiry structures, particularly in comparison to large institutional players?
   b. Has SEBI assessed the potential negative impact on retail investors who relied on weekly expiry options for trading strategies? If yes, kindly provide relevant details.

3. General Query on Retail Investor Protection:
   a. If SEBIs decisions aim to reduce investor losses, is SEBI planning to propose or implement restrictions on all options trading? If yes, kindly provide details.
   b. What steps has SEBI taken to address losses incurred by small investors due to high transaction charges and other trading costs?

4. Gambling and Betting Platforms:
   a. Has SEBI or any related regulatory body analyzed the impact of gambling apps, cricket betting apps, and other such platforms on the financial losses of common citizens? If yes, please provide the findings.