I recently stumbled upon a article regarding the cash segment - SEBI weighs margin reduction in cash trades; key panel takes up proposal
SEBI comes up with frequent changes, can’t they keep the markets stable for some time
To all the traders, what positive/negative consequences can this have?
Leverage creates liquidity in the market. Good move to revive cash markets. even SEBI seems to want investors to remember equities exist.
How would that help?
Delivery still requires 100% value right?
They want to increase intraday cash trading volumes, which they hope will make it tougher to manipulate derivatives.
That’s a good point.
But what I am really worried about is Sebi chairman’s statement of “Deepen the Cash Market”.
Not sure if it they want more volume or more delivery volume ( and Intraday cash is also speculative right like F&O )
To deepen the cash market meaningfully, it will take decisive action from the FM, by abolishing STT
I don’t think they are going to abolish STT, but we can except less on cash trades compared to derivatives