Unreasonable penalties being charged

So thing here is that earlier I wasn’t being charged these penalties but this month alone I have paid over 22000 in penalties and I didn’t even make as much of anything really. And then I came across the new rules and I get what’s happening. But this is just unfair to traders. This is just retarded. This is just NSE making money off traders. What’s more retarded is that you guys don’t say anything against it. Typical Indians at work. You guys kicked in the balls by the government, your money is at risk and you guys gladly take it. Look brother I am a poor guy and I trade futures for a living. I can’t afford lose money to penalties when I am already risking my money while trading. And yeah don’t merge this topic with an existing one because I have been on forums all my life and I know that posting in an old thread is practically beating a dead horse. So now that I am really pooping the balloon here, what do you guys think?

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over 22000 rs in penalties ? why and what for ?

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First time heard someone using that word for trading losses

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There are many traders here,but you are the only one crying. I wonder why that is.

The worst part is you have not clarified for what you have been penalised and you want others to take up the issue.

You say you been to many forums,yet you have no courtesy to put you case in a clear and concise manner so people can help.


Whats the reason for your penalties?

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Penalties should be taken from broker and not from traders. This is frustrating

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@divyanshisharma , this person has not even mentioned what is the reason for his penalties.

Why blame the broker.

OK so everyone is asking what’s the reason for the penalties. So I have been charged penalties 7 times and if you would know the ledger tells you for which date you been charged the penalty. Out of of this, three times I had a negative margin and four times I had a positive one. Just so you know, earlier I had plenty of times a negative margin but wasn’t charged a single penalty. Now from how I understand the new rules , a thread for which can be found here -

Then a negative margin now would attract a higher penalty because previously even if you had a negative margin, that negative margin would be reduced by the fact that you paid for exposure along with span. But now that is not the case. Now even if you have paid for the span and exposure and you have a negative margin, then you would have to pay a penalty on the entire negative margin. Let me explain by an example -

Let’s just say that you have 1lac rupees as free cash in your account and you take a futures position for which you pay 1lac as both span and exposure with let’s say span being 60000 and exposure being 40000. Now if during the day the position moves against you and you are making a loss of let’s say 20000, then technically you have a negative margin of 20000. Earlier you wouldn’t pay a penalty because you already paid for the exposure but now you’ll have to pay a penalty on the 20000 which you have as negative margin. You are practically making more loss by going into a loss. At least this is what I’m understanding. As for a penalty being charged on a positive amount, I don’t really understand why that’s happening but I’m guessing it’s because of the “encumbered/uncumbered” margin rule. What do you guys say?

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The new rule is harsh on small traders for sure. But I think it has a positive side to it. Blind trades/pure speculation will decrease.

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Who should be pulled up according to your view, Brokerage or NSE ?

Well it doesnt matter who is wrong or what.

Solution is simple - Stop taking future trades. That product is not for people having less than 5 lacs in their accounts.

Even if your trade was right and stock goes up finally, the way it will go up, you will pay penalty 10 times in between and your total profit at end would be less than the penalty you paid.

Retailers with small capital should stick to options

Also is it stock futures or index futures? Doing stock futures with less than 2 lacs of capital, better than that you buy Gitanjali stock worth 2 lacs. That would be safer.


The SEBI did it. So they are responsible.

The entire market is speculation. That’s the reason why we trade. You want the market to shut down? Because that would be the only way speculation can be eliminated.

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This is true as per the current lot size the risk involved in taking a futures trades is too much for a small account. Ideally a trader shouldn’t risk more than 2% of his capital on a single trade. So the account size should be minimum 5 lacs . The more the better.

@Avi_Garg And a drawdown of 20000 is unrealistic for an account size of 1lacs. Thats risking 20% of the account in one single trade. Totally stupid thing to do . Just a few losses would wipe out that whole account in a blink of an eye. You wouldn’t even notice how fast the money is gone if you risk 20% in a single position. No wonder why the exchanges are asking for a penalty.

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But yes every retailer traders is affected by that enormous lot sizes and all such penalties. Afterall its my money. Why should i be penalized against my money ?? This is a rather stupid policy. Simply to curb retail participation SEBI guys are doing such harassment. If a trader loses he will lose his money then where is the question of penalty even ?? I don’t understand which twisted brain came up with this :joy::joy:.

And on top of that there is the usual huge STT, Exchanges Transaction charges, GST and what not. As if i’ve ordered a few tons of goods and materials which needs to arrive from other states and i need to pay for the transaction charges , levy charges :rofl::rofl::rofl::rofl:. Why so huge charges when everything is actually digital computerized and the only transactions are the transaction of bits and bytes.


We can’t have the Futures market be destroyed like this. I want to participate in the market on fair grounds and this is just unfair.

Well it hurts i know . But what can we do tell me. What can we retailers do to make them SEBI come to senses.

We should take this to court. Or at least I am taking this to court. The more people object to this the better obviously. The new rules are just counterintuitive. It directly plunges the volume in futures market and everyone earns less.


Good luck with that.

Don’t be sarcastic. We can probably turn this around though I know it’s very unlikely. We should try at least.

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