It depends on how you look at it. Based on the letter above the suggestions are as follows,
A) Traders with a net-worth above 25L are considered HNIs and they should be exempt from the product suitability check(whatever form that takes)
B) Traders with a net-worth below 25L will be considered Retail Traders and they will be required to complete one of the following criteria to trade F&O
The client should be a graduate from any stream
Pass a client level NISM exam ( special module to be designed for retail clients)
Attend any SEBI recognized certificate seminar/course
Be an existing client of any exchange member for the past 2 years having traded in the
derivative segment with a verifiable record of such trades.
C) Furthermore there will be a margin exposure check limited to 5x of your net-worth but further leverage can be provided by the intermediary if they want to(or is justifiable probably based on trade history)
Any amount of certification/knowledge cannot guarantee avoiding the market risk…Ithihaas Gawah hein! The so called Fathers of Financial Derivatives (Schoels, Merton) were on the board of LTCM which went Bankrupt becos of Derivative fiasco.
Precisely. People don’t understand the risks, but they are constantly yelling at sebi after making few good trades and considering themselves to be the masters.
So called ARTI has become silent now. Protests aside, retail traders won’t even have the guts and time to arrange for a meet once. All they know is to write blogs and try to create some noise in social media and they wud disappear.
When govt. increased taxes on gold, real estate, atleast they hav an association already and have approached the govt in a polite manner. But nothing has changed in government’s stance is a different thing.
Only the extremely affluent retail traders with abundant riches categorize themselves as HNI… And SEBI is totally favoring only such people…
While majority of the retail traders in India are still struggling to make a decent living out of it but SEBI always attacks this poor masses with all its non sense rules and restrictions…
I find only anmi talking sense in the midst of all this confusion and uncertainty…whenever sebi makes a statement without going thru the announcement completely I can sense it will be nonsense and I am usually right
Do you even realise this ? Education is the only way out ! People go study economics/commerce/etc to minimise risk ! LTCM made mistakes and went bust but bright minds still find employment in top levels to this day.
Oh! ARE YOU IN THE MARKETS WITHOUT ANY EDUCATION ?
Then what is the way out ? Apart from the discouraging words, give solutions here !!!
I just dont understand the attitude of these guys. I think this is a case of sour grapes. If these have a valid point let them put it forward without being snobbish. But they just come here to taunt.
Yeah … average people come in market with 1 or 2 lacs at least … and 25 lacs net worth is not such a big deal
So basically about 90 % of retail traders should qualify for being HNI
