@ksksat Cash or F&O, for both, linking ITR or Net Worth to Exposure is not only illegal, it is also against fundamental rights of financial freedom, and economic equality.
So SEBI cannot bring such a rule for any segment of market. SEBI has no right as per law, to decide how much exposure one person wants to take in any business. Its fundamental right of every citizen of India, to take as much exposure as they want in any business activity.
Jokes apart product suitability framework talks about cash segment networth exposure
Read below article. It does talk about implementstion part meaning rule is all set.
Article also mentions sebi is the only regulator in world to limit equity cash
@ksksat It’s a proposal to link net worth to exposure for both cash segment, and derivatives (F&O).
But its facing opposition across country from everyone. If SEBI doesn’t listen to protests across country, and goes ahead, then it will have to face court cases.
See this response to SEBI’s proposal by NSE Chief. SEBI cannot ignore so many sane voices questioning the logic, reasons, motives, rationale behind this draconian dictatorial move. Lets see what happens. In my view, SEBI will have to drop this proposal. SEBI is exposed completely across country now by suggesting this draconian step. It has lost all support among traders, investors, and other relevant market participants today.
@vikas1970 hopefully ur point comes true. But if u read Bloomberg brokers have started to discuss who should certify…they are OK with whatever non sense viswa and his team brings but only that networth certification burden these brokers do not want to take. So i don’t think broker community is least bothered.
Sebi can bring this rule after election
That is why mutual fund related rates they have decreased now to attract innocent worms into burning candle
Next step is entry cap networth rule etc
Funny part is what if holding value increases networth at some point? Should i sell some shares to bring down holding value?
@Ksksat keep writing to SEBI, Govt, PMO also to oppose this draconian proposal.
This proposal by SEBI is against the constitution of India.
As per the press conference after board meet, It was mentioned that the Product suitability was not discussed as it requires consultation with all the stakeholders.
@nithin Brokers like Zerodha, and all other brokers across India also need to oppose this step by SEBI tooth and nail across any segment (Cash or Derivatives).
This step will stop the long term development of Indian Markets. Indian Markets will never become global leaders if this step by SEBI is introduced. The Brokers will also be one of biggest losers in long term if this step by SEBI goes through. Brokers should not think, that they are insulated by this decision. Brokers income is directly linked to the growth of the markets. And if you spend some time, and analyze long term impact of this step, then you will realize that this step will stop Indian Markets from becoming global leaders.
If Indian Stock Brokers want to compete with or leave behind the top global stock brokers in world one day. If Indian stock brokers want to aim big, and aim to become global players, then Indian stock brokers must oppose this step by SEBI.
Indian Stock Brokers will never become global players if such restrictive, narrow, regressive steps by SEBI become reality. Indian markets reputation and stature will become like the status of Pak, BD, Saudi Arabia in world today which are considered regressive, backward and restrictive. This will stop Indian markets from ever reaching the top in the globe. Which in turn means no scope for Indian brokers to become global players.
Hi @ vikas I know u well…who r u ??? …I think u r lawyer…
@Nithin Indian Brokers and Financial Firms need to decide if they want to be seen in league with smaller countries like South Korea forever, or whether they want to compete with and reach level of global players in US, Europe, China etc.
If Indian Brokers and Financial Firms allow SEBI to implement this proposal in any segment (Cash or Derivatives). they can never reach US, Europe, China level. They can only reach level of South Korea at maximum.
Indian Brokers and Financial Firms should look at it from a broader perspective, instead of looking at it from short term perspective. For short term gains, they should not kill the long term development of the very business which gives them income, by allowing SEBI to implement such regressive steps.
If this proposal by SEBI goes through in any segment be it Cash or Derivatives segment, then in short term the retail traders will pay, but in the long term the people who will pay will be the brokers and financial firms of India (due to no development of markets) and crashes in markets driving away common people from equity markets also. And the traders for whoever its possible, they will all switch to global platforms outside India in long term.
Its time for Brokers, Financial management firms, and all India based players in financial markets to take a stand against SEBI on this issue with complete unity with traders. Every player from India with stake in Indian financial markets needs to oppose these type of SEBI proposals unitedly. Or else everyone from India is going to loose at end of day due to such SEBI proposals.
no Aakanksa sorry I am not a lawyer… I think you have mistaken me for someone else 
Ok sorry @ vikas 1970…no I guess from ur language of writing… u r so knowledgable.
Hi @ vikas I think u r so knowledgeable person…why don’t u join @ avi for movement…
even if SEBI will implement this net worth rule or not, its not going to affect paper trader like you…let the real traders trade peacefully
thanks Aakanksha… right now almost everyone trading in india is part of this movement against SEBI… people are writing to SEBI, Govt, PMO etc about it in large numbers… People like NSE chief are also writing against it… Just continue this movement for now… if there is some other proposal let me know details (message me as i am not aware about the @ avi movement), I will surely consider it and join if its required…
I m also new person but while I was reading came across to topic ARTI which is brainchild of @avi and he is doing good for us so we should suport him.
@vikas1970 u r in dream world though ur points on broker opposing the move is very valid
Do u think brokers will even sneeze in front of SEBI? In my above article few brokerage related people were just giving suggestions in how to implement this networth rule who should certify retail traders
Brokers will abide by all SEBI rules in full spirit. They will not hesitate to freeze trading accounts to collect networth certificate from auditors once SEBI brings new rule
Now also they are pleading with sebi just on verification and background check of networth part not on rule itself
@vikas1970 ,@ ksksat I heard that they r going to bring this rule only for derivatives in order to avoid over speculation of fno traders.they r giving some facts like fno volume is 15 times more than that of equity cash segment.
I think sebi is going to ban derivates step by step for retail traders…they wanted derivatives should be used only for hedging purposes. This time we got extension but so soon in one fine morning they will bring this circular for Fno.
This time due to insider trading issue it got extension.but sebi is behaving like Kim jong to destroy Fno for retail trader.somehow they got success by bringing ASM rule.
Its like sebi wants to stop ur successful life . In others professiin ther is no such shit
