What is Sebi gonna do next?

Any idea about how Sebi might choose to hurt retail traders the next time? It’s just something that keeps me up every day and every night. For real, I have lost sleep over it several times. I mean considering how traumatic the blows have been in the past, you never know what’s gonna come next. I thought it’d ease some of the restlesness if someone had an idea what could doom upon us?

No sarcasm here. Promise.

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I Never trusted SEBI , You don’t need that panic, there is always one or the other ways to find a trading opportunity even if SEBI try hard to go against /stop retail traders , There is lot of chances of opening up of USA market for Indian retail traders, keep hope and get going ,
coming to your points i think left leaning SEBI can do is , SEBI can remove margin systems completely , can increase FNO lot sizes , try to close Brokerage systems & Stock Exchanges will take charge of Brokers roll, try to remove BTST trades , Can bring Net worth criteria to trade FNO and so on , there is Hand full of things SEBI can do against Retail Traders in the Name of protecting Investors and their political Bose’s are Okay with that .
But keep hope & cool and try to adjust & adopt the changes the SEBI brings.

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why ? are you having bad dreams?

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I kinda wanna take up trading as a major of source of income but I am afraid my dreams are being crushed because Sebi keeps trying to push out retail traders.

Why do you think sebi is trying to keep retail out?. If they wanted to do that, they would have outright banned retail trading.

When sebi makes a decision ,they are looking out for the best interest of major financial institutions. retail is not even on their radar.

Retail traders with their peanut accounts is not going to be a risk as compared to a financial institution where even a fat finger will cause a huge spike in markets.

I don’t understand why retail traders think sebi is out to get them?

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You do make a point but if they weren’t trying to target retail traders, they would have left retail traders out of the equation while imposing these rules and let them be happy. They could easily make specific rules for institutions that wouldnt conflict the interest of the average retail trader. But time and time again, we have seen and even heard from SEBI itself that they are indeed trying to push out retail traders. The first time it happened was with the increase in lot sizes. Who do you think that was for? Sebi itself said that they wanted to curb retail participation in the market. And look at the lot sizes now. They have only gone up every since. Then talk about margin rules. There have been all sorts of changes in the margins since 2018 but if you go through the details behind them you’ll realize that they were indeed directed towards retailers. Now Sebi would say that they were trying to protect the interest of the retailers but essentially speaking, they have only hurt the retailer’s ability to trade. For example, nifty margin rate used to be around 8% and now it stands at somewhat more than 16%. It’s kinda more than double what it used to be. As of the time that I am writing this post the markets aren’t as volatile, but still you have to an unreasonable margin of 16% as if it’s normal for nifty to fall by 10% on a given day. Now, Sebi would tell you that they were trying to reduce the systemic risk in the market by imposing such high margins. But think sanely for a moment, are such high margins covering any more risk than what older margins were covering? Charging 8-10% margin also for normal days would cover practically all of the losses that would arise for that particular day. And as volatility goes up in the market are correspondingly increased. This was in the older margin framework as well which then covered for losses occurred on volatile days. There was nothing wrong with the older system that had for so long remain unchanged. Additionally, there was a report published somewhere that revealed the margin systems were in fact healthy and no systemic risk had incurred under them. But still Sebi decided to hike up the margins to the point where its kinda barring for retailers to take futures position. Who has got that kinda money to trade and on top of that hold humongous lot sizes? It’s inviting undue risk to trade in futures. For retailers I mean. Does all of that not add up to SEBI’s inherent intention to prevent retail trading? There’s a lot more I can say like how Sebi has taken away intraday leverage in fno and at the same time reduced intraday leverage for the cash segment. That’s not for financial institutions, it is for ironically the best interest of the retail trader. Sebi does want to control how much retail participation occurs and in what form, whether you believe or not.

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I agree to some extent what you say.

But what i m asking is why is it only a handful of traders have his problem and NOT everyone.

Shouldn’t all the brokers and ALL retail traders be up in arms , but i don’t see any protest outside SEBI. I mean not even brokers. Even they are not raising this is an issue?

My question is why only a few traders on this forum have problem with sebi?

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This is not the issue, just for only few traders on this forum , its the issue of all retail trades , who are having less capital and under privileged to have it . In our country Sarkari Babus really don’t know what they are doing , but they will mess up everything ,

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Oh well, who’s on who’s side is a story for another day.

As long as retailers loosing money, sebi won’t do anything. Be calm.

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@Avi_Garg they may bring net worth rule both for investment in stocks and trading.
May ban F&O altogether if per annum income is less than 40 lacs
May convert all cash trades to delivery only for retail

Then retailers won’t loose. So they don’t bring it.

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If they do that don’t you think they lose on the revenues viz different fees post execution of trades?

And also if they do it , then there is no role for SEBI in stock market and SEBI will be winded up :slightly_smiling_face:

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Hahaha, good one.

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