At least this guy gets it.
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Which is exactly what the problem is in this country. There is no real platform or avenue that the general public can resort if they face an issue. PILs and such are too complicated for the average person to approach with.
Whether people make are making sensible trades or not or how educated they are is none of SEBI’s concern.
Also no one should trust the government so much as to think they they have the best interest in mind.
This I believe could be done. Defining eligibility on the basis of knowledge and screening potential clients for the activation of a particular segment is something everyone can live with. It’s how it’s done in developed countries as well. But I believe crying out ‘retail traders bad’ and stifling/hindering ease of trading in the name of safety is the regressive way of solving the issue. But I am afraid SEBI may not come up with best solution after all.
Here people are angry with me because I believe that whatever restrictions SEBI is placing on retailers to restrict them from entering f&o is in their own interest
This is the real problem. People will give all sorts of reasons but won’t agree that staying away from Derivatives is for their own good. Legends like Warren Buffett have even called it weapons of mass destruction.
And that’s the reason SEBI has come up with all sorrts of non sense rules to save these ignorant folks.
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Perhaps you are ignorant ? Its dangerous for new people, for people who have no self control and who have not done the work, who use too much leverage, who are not diversified enough.
He/his firm uses derivatives apparently.
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We need in the stock market people who trade the market and does so profitably. We need people who can inspire people in to this line of activity. In every field there will be people who tried and failed. Who tried and found it tough. But that is no reason to ban entry of the rest.
People have died playing cricket. So are the regulators going to stop children from taking up cricket 
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I know that his firm trades derivatives. I believe that Derivatives are for big guys and Institutions and not for small people like us.
And I do consider myself not only ignorant but also foolish. I have heard that f&o is zero sum game and 90% here lose money. So I never dared to try my hands on it because I know that I’m not that much sensible to be in top 10%
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There is no ‘us’. I am me, you are you. Everyone has his own set of beliefs and abilities and not everyone has to trade. What you say may make sense for you but It is possible to be profitable with controlled risk, and i am profitable and so are others. Only point is to not put the ban hammer on all of us in the name of protection and give access only to institutions.
But anyway, these are pointless arguments. SEBI has not done anything yet and we have had a change of guard. We already got sensible change in peak margin rule after that. So hopefully they will come up with sensible regulations that prevent newbies from making fatal mistakes out of ignorance greed and overconfidence while leaving us alone.
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They don’t want to see another harshad mehta or any rich inexperienced guy taking lakhs of loan from bank and doing pump & dump scheme in the market. Frankly unlike what majority think they don’t mind all the big whales, some guys and banks doing price manipulation.
They are just afraid if losses exceed too much, all the guys on leverage(took loan from bank as personal loan or credit) might default and might cause a bank run which might turn into recession. Regulations are joke. Maximum they might do is see if you have cibil score or see what liabilities you have or where the trading funds are coming instead of banning it completely.
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Regulators are so worried about me. that they wish me good health every year! even personally cheer me up when
I incurr consistent losses.
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When SEBI came up with margin increase everyone was against it. Now it feels like an awesome decision.
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Exactly. Everyone has their own trading/investing style. Some might prefer tradional long term equity investing. Others might prefer Momentum trading while some may prefer to execute complex hedging strategies. Everyone has got their own unique appetite and I just don’t believe any particular style should get called out as being akin to being gambling as long as the individual is well aware of the risk he/she is taking. And if someone has found an edge in a particular style, why should they not pursue it to make a career out of? What’s wrong in conducting a speculative business?
I know most would say that it doesn’t provide any consumer value but that’s a very subjective argument.
Like I said, not everything is black and white. Even if 90% or 95% people lose in derivatives(people lose in investing but let’s put that aside), that’s perfectly normal. Cause of the fact that only few can succeed in a given field. But by bringing in unnecessary rules and regulations, the growth of the few successful would be stifled which could potentially go on explore new ideas and inspire those that want to follow their path. That’s basically what I am saying.
As far as derivatives being weapons of mass destruction go, tell buffett derivatives are an effective way to hedge your portfolio when done right and it actually reduces risk in a given system. Of course the key phrase is “when done right.” Even a knife is a weapon of destruction when not handled properly. But for derivatives to work, we need liquidity and participation but apparently that doesn’t seem to be welcome in SEBI’s view.
Product Suitability Framework seems to be in the works again…
After the flurry of mid 2018 news coverage, things seemed to settle down, not sure exactly what happened.
It seems that there is some recent activity in this space since last year, more recently last month. The below article is from April 2022:
"The meeting sparked speculation that the Securities and Exchange Board of India (Sebi) could have unofficially nudged NSE to start the groundwork for the contentious product suitability framework for individual investors, a proposal that brokers had strongly opposed.
In the meeting, NSE sought brokers’ feedback on the steps that need to be taken to ensure that retail traders have the knowledge and wherewithal to punt in futures and options, said the people cited above."
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After two decades of introducing f&o they are wondering whether we retail know about f&o. We know that futures have future and options give a lot of options 
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The real question is why is there SEBI fees? sebi comes under MoF.
We have to pay STT/CTT and sebi fees on top of that.
We should get rid of SEBI charges.
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Depends on what the criteria for eligibility would be. If it’s net worth, minimum account balance or that kind of nonsense again, then that by all means should be condemned. If it’s screening for knowledge and other qualities and such, that a person should possess to be considered a sound client, then I am all for it. But even in that case, it would be better if SEBI doesn’t pass on the burden of screening onto brokers cause that would be too much of a hassle for brokers to implement. Also, there could be a discrepancy when brokers approve clients under the eligibility criteria. Cause you know, brokers may or may not be diligent when approving clients and might end up seeking their own best interest. Just saying this because this happens in the US as well, where brokers aren’t exactly uniform in the way they approve clients. So, there should be some alternative body that could screen for clients with all due fairness. Just saying I mean. SEBI should take whatever decision they make with a sound rationale.
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If NSE is biggest derivative exchange… it is not a thing to be proud of. This also means culling of retail is very high. 85% of trades happen in NIFTY/Bank nifty options. This means it is mostly speculation.
For a developing country this is not good especially if there is participation of youth in this business. Stock market is not industry. Even brokerage is not a industry; it is business. Industry means there is value generation/problem solving; building startups creation of employment etc… Here, in the stock market money changes hands and some % of money goes to the middlemen including govt. That is it. Stock market thrives on the new blood, undisciplined blood. It is very important that large number of youth still work in the society. That helps in nation building. Given that, if some people want to try out seriously in the stock market, they should have the sufficient and certified education.
I welcome any barrier that SEBI puts in regulating retail speculation (especially through education and certification or allowing only after few years of opening a trading/demat a/c).
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