SEBI's consultation paper on F&O trading

Trading Announcements
88

This consultation paper addresses index derivatives.

89

any timeline ? when does weekly index option will removed ?

90

SEBI has released the consultation paper for now, will take some more days for the recommendation/feedback to be collated. After that it might take some more time based on feedback received to release circulars enforcing the measures listed in the consultation paper. Cant put a timeline to it.

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91

Any idea when it will finalize at least?

92

Atleast 6 months imo, can be faster if thereā€™s political pressureā€¦

93

Everyone:

Please provide your feed back here to SEBI.

Here discussions doesnā€™t matter if you donā€™t provide your feedback in right chanel.

It just takes less than 5 min!!

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94

nah, the market is enough i bang out some options sometimes options bang me. no need for this

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96

Interesting article.

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97

It would be interesting to know hedge v/s speculation ratio in the FNO activity to get the true picture.

But not sure how it will be possible to collect such data.

Maybe, before entering into a trade there can be an option to disclose the intention of the trade, to classify it is a hedge or speculation.

And if someone claims it as a hedge, then they can show that they have an exposure to the underlying (but this may not be possible for indices)

If we remove the hedge portion from the total losses, the actual % number of ppl losing from speculation activity will come down.

98

By 1% may be. :grimacing:

1 Like
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Hi @ShubhS9 @siva do u have any idea which index will be kept for weekly expiry?

102

Hi Team,

Just need to know two things?

  1. Will this new norms change the rates of the strike prices?
  2. Because of this will market get slow down? like in 2-3 days Bank Nifty moves around 1000 points. so will it not move like this after those norms?
103

I think, every retailer will try to be buyer, as selling will be difficult with less than 1 cr. We may see higher Premiums and it will be like a fight between Retailer (Buyer) vs HNI/Prop (Sellers)

104

Nope. Nothing on this yet.

105

Most likely it will be nifty and sensex as they trade more for respective exchanges.

106

But doesnā€™t BN generate higher transaction charges?

107

If I sell option first with my collateral margin and then use that collected premium for option buying is it possible? In short can I use collected premium to buy the option very next minute?

I would also like to know this. @ShubhS9 can you please clarify?