What has gotten into SEBI?

Just hope they show consistency and this moronic regulation is stuck in red tape just like everything else.

Not to worry.

This will actually be a loss making regulation for exchanges and brokers. Haha.

I don’t see this happening.

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The best interest of a small time retail trader - That is the point. It is knowing the leverage effect and taking risks and not small or big. While there can be some limit, like what it was before, say 2 lakhs, there is no reason to deprive the small trader to FNO. Is it ok for the rich guy, without understanding that he is using a higher leverage and lose his money? That is what is implied by the current justification. Educate the guys, rather than depriving them.

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The rich can afford to lose in high leveraged trading , whether he knows what he is doing is different matter.

A small retail cannot afford to do that.

Education in trading does not work. if it did , we’d all be millionaires at least.

How many traders really understand risk , even after plenty of education is available and plenty of signs put up.majority of traders don’t care , they are gambling their money away.

Edit: Also, why are you people arguing with me I m not SEBI. why don’t you go to SEBI office and protest.

Makes sense to have an exam. Something like NISM Equity Derivatives exam to trade F&O. Although the exam is not really difficult, people clearing it will still put some thought that F&O is serious business rather than just clicking a button and trade immediately.

Having bigger lot sizes only help big traders to short options. We end up buying Calls and Puts and lose the whole premium. We should have the opportunity to take the same trades. Even hedging can be made possible with this for people holding small quantity of equity

Exactly !!! Small players have no access for hedging now. I wonder what SEBI has to say about this.
SEBI’s job is to create a level playing field based on knowledge. It is now creating a field based on wealth.

The rich’s ability to lose the money, should not be the deciding factor! And, that definitely should not be decided by the regulator! If the regulator is so concerned about the small investors, they should educate the investors, which would be beneficial to all, the rich and poor alike, and let the investor decide. It is his money, his risk taking tendencies and abilities, anyway, so he can decide to lose (and win it big too), but the regulator should not ban him!

You, seem to share SEBIs ideas, and so the replies to you!:grin:

Again i m repeating.

Education has been there from beginning.

All of you are saying on one hand that its traders should get to decide their risk and their competence. that means they are already educated.

So where is the need for further education. Is this rocket science or something?

All your arguments are conflicting with each other.

In anycase , you people are already super profitable experienced traders. Even if SEBI mandates income proof, nothing wrong with it. you have proof to show high income from trading , so what is the issue?

addendum to my earlier thoughts…
In a mature SLB market, trade qty can be 1 & any number of 000’s in front of 1 :hugs: based on risk. So, basically Stock Derivative market need not exist.

p.s: Derivative trading prohibition shud be based on Networth rather than Income. If any trader shows Income Loss for the year, shud they be prohibited from next FY?

Thanks for your, ‘you people are already super profitable’, and wish to get into that league asap!
There is no conflict; traders should get to decide their risk and competence, and they should get educated. The decision should be made by him, instead of depriving the opportunity for him.

So according to you, to change a system, show the stick to the poor first. And let the rich and wealthy take their sweet time to adjust.:thinking:
Today’s SLB scheme is still complex. Simplify it first and then call us over to the new system.

SEBI is being stupid. The only comforting thing here is … it is a “discussion paper”. Lets hope someone with more senses got to make decisions.

Care to share the data? any summary?

I believe the retail traders participation cannot be reduced just by requiring them to have more money.

If there is some kind of pledge requirement of … say 10 lacks … and some certification requirement for any kind of leveraged trading… possibly renewal requirement every year… … then we can talk about guarding retail traders. :smiley:

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In the Financial market, every participant is on the same level, based on their risk profile.
SLB scheme can get simplified if DPs work together for tht goal. They would take interest if there is considerable participation increase in Equity segment. So this might be the first step to move the herd towards that.

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What data you want me to share?

I m the one asking for data and proofs here, but no one is providing any concrete data.

As much as i want to be SEBI and protect the retail traders , i dont not have any powers.

Needless to say , this regulation will not go forward considering the best interest of exchange and brokers.

Let’s make a petition on change.org to sebi & finmin stating that education is the best way forward.
Regulation & artificial barriers are a retrograde move.

What say?

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To. Sebi & finmin

Topic - “educate Indian stock traders by holding exams similar to those held by SEC In USA”

How does this sound?
Any better suggestions?

Education helps but it doesn’t make anyone immune to losses. If it had than everyone with high IQ would have been billionaires by trading (even Newton lost money while trading & said I can predict the movement of heavenly bodies but not the madness of people) & stock market would have never crashed since people regulating were so called experts & highly educated. My point is; there should be fair & equal opportunity for everyone as we don’t live in Stone Age anymore. However it’s definitely better option than the reckless move by SEBI. Any other suggestion is welcomed, until then I vote for it.

This education being recommended, is basically to make him aware of the risks of trading, leverage trading.

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I am a retail trader and I am earning 1000 RS per day using option strategies

Before trading in options I lost money in intraday equity trading.

I agree derivatives has risk but your point is not valid. Not every retailer is losing money. If they are losing money it is probably due to greed and intraday trading.

If you learn derivatives (options) strategy, then you will say derivatives is a good platform for retailers.

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