Out of all the things that are wrong with India, why is retail participation in the F&O segment perceived as the most absolute dangerous that needs to be stopped at all costs.
For a country that can’t provide clean water or clean air or even basic social security to its citizens, it sure talks big about becoming a super power. Instead, with an IQ of over 300 it focuses on non issues like derivatives participation and banning VPNs and such. If only it could focus 10% of its effort into actual issues, it wouldnt deserve the title of being coughshtholecough*.
SEBI is doing its job. I’m not giving my opinion on the above regulation to be brought about but SEBI has nothing to do with providing clear water or clear air or even basic social security to its citizes.
SEBI sole role is to regulate the market and make it safe for every concerned party. SEBI focuses more on minimizing the risks rather than promise of castles in the air.
Because the young generation of the working age after watching all the BS on YT, TG and TWT would soon be mislead with the idea of making easy money and not go out and find a job for themselves.
If young generation of working age are unwilling to work, the country suffers and the social fabric collapses eventually.
Furthermore, considering the tax incentives provided to foreign professional trading institutions ( who control the international financial markets ) to compete with these retail F & O participants in our country, all the savings of our households will be drained out of the country ( drip by drip , weekly by weekly ) by letting every one participate in it.
They are just doing their job of trying to protect retailers. Retailers are not willing to understand anything and just want to enter f&o thinking it’s easy money.
So stop complaining and feel lucky that we’ve a regulator which actually cares for innocent traders.
As long as they don’t stomp on the dedicated and careful trader in the process. This is someone’s profession too and not just a playground of careless newbies.
90% of Indian workforce is in the unorganised sector. They contribute to 50% of GDP. Tomorrow are the regulators going to say to the street vendor who is much more quick on the feet innovator than many MBAs to provide net worth certificate to start his business venture ? That is killing the guys chance at making a livelihood.
New age gyaani babas think they walk on water and know better than the retail who by the way can also read, write and think. It would be nice if they can come down to earth and pit them against retailers for a trading . Then we will know who knows better.
Our society is mark and certificate oriented. We need to move to be a more merit oriented society. Knowledge and skill need not necessarily come from formal means. Also somebody has gone through the formal means doesn’t mean knowledge and skill was acquired. E.g:- Engineering colleges in this country churn out less than 5% who are actually employable. We need to think more like Ranchordas Chanchad in 3 idiots.
If that is their true intent, why not invest in education of speculators… like Zerodha did with Varsity?
IMO, ignorance is eradicated by illumination rather than regulation. Also, despite all this, they cannot protect anyone against themselves… As the saying goes, a fool and his money are easily parted.
SEBI won’t ever ban retail traders. Banks and the big institution players definitely won’t allow it. Most dumb money floating in the market comes from retail traders only.
Some sensible regulations that put the initial brakes for large number of new people looking to make quick money makes sense.
As long as it allows them to succeed (or fail) once they are ready.
As if investing in education would’ve helped. There’s enough material on internet for free but nobody has the time to go through it.
I don’t know their true intent. All I know is eventually it’s in the interest of retailer even if the purpose is something else
Also the general spite among the public against SEBI seems to turn tables when I come to speak and point out the flaws. Instead people start pointing flaws in my argument. Let me address them.
First of all, I am not saying that SEBI deserves to be hated or anything like that. Yes, they are doing their job and regulations are necessary to prevent mishaps but overregulation is just as much of a bad thing. Anyone who says that SEBI is doing all this to protect the little guy should also understand that when governments regulate, the result may not the best solution and it is usually for the worse as it has been seen in almost every case. If you are a dignified person in this profession, you should be afraid, very afraid when something like this comes out.
Also, never trust the government. Their job is to tax you and control you and nothing else. Why would you want to trust an entity that would first prioritize their agenda rather than your actual well being.
Also about clean water and clean air, I just want to say SEBI is still a part of the overall government. I don’t care how the government organises its efforts but I firmly believe public health should be the foremost priority rather than smaller issues like what retailers are doing with their money.
But SEBI has nothing to do with healthcare. So unrelated even if all within govt.
We cant stop everything for 1 thing. All can progress together. But fate of poor people, education, healthcare etc does not seem to be high priority in general. Look at the investments made. This applies to all parties i guess, but current one is no less indifferent. All effort seems to be going towards prioritizing medieval medical practices.
what should’ve happened, How it should work,
That’s not right or this is wrong…list will never end even if it happens that way
we clearly aren’t as good as USA in healthcare or sanitation but we are very far from beginning, our pace might be slow but it’s definitely going forward.
Govt may backlash us but can’t do anything about it, but I think it’s not as bad as tyou think
It’s just you’ve focused too much on downside, just open eyes & be grateful & let the system run
the previous changes made by SEBI made me so dejected that I even rethought about trading
but as a flee to market can’t do anything other than to move forward
How patronising, don’t you think? I personally believe things are never black and white. Retailers aren’t entirely dumb and SEBI isn’t entirely good. It’s the same SEBI that introduced the peak margin rule that resulted in several traders paying heavy penalties that would have otherwise been avoided. It is only that SEBI has given some relief to traders by easing down on the peak margin rule and letting only BOD(beginning of day) be considered for reporting of peak margin. Otherwise I clearly remember people outraged over SEBI’s peak margin rule. The same SEBI that you are trying to defend. All I am saying is that skepticism shouldn’t be thrown out of the window.
Regulations should exist to create equality of opportunity. It should not exist to create entry barriers that deny a vast majority to try their hand at something.
Corporations can run HFTs in exchange. They have visibility on price and order flow before any one outside. Getting information before the public and using it to profit from falls in to the purview of insider trading. Retail is at a disadvantage here.
Then there is talk of regulating retail api and automation.
Now trying to create more restrictions for retail entry and participation in to stock market.
Retail segment is no dead dodo. Education is ok. Alerting about possible risky behaviour is ok. But blanket bans and entry barriers is just regressive and transgressing into individual freedom in the garb of protection.
. Then we will know who knows better.