What regulations we can expect from sebi to reduce option volumes?

@nithin hey can you give us some rough ideas what sebi might do to curb the volumes as stated in media like networth or increase in lot size ,I want to prepared rather than a complete shock when the circular released🙏

Realistically they might do the following

  1. Min networth requirements (or account size) like it is in the US, say around 5-10 lacs.
  2. Limit to only 1-2 expiry days per week
  3. Doubling current lot size

All are reasonable ideas imo.

Imo networth rule will have much more impact than the other two and even affects the brokers by a larger extent

There will be a consultation paper coming out.

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Are brokers being consulted on this issue and what is the stance you are taking on it?

Any idea on the timeline sir??

Not really.

Don’t know.

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Pretty terrible again.

Underplaying impact of STT as if that is small change. Maybe so for some, but active traders will feel it. Losing traders will definitely feel it as they lose a large part to this - on average.

Cant expect any better from them i guess. Not a very data driven reply. Maybe SEBI does the data analysis and then finmin interprets as per convenience.

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There is a actually better way for SEBI. Consult with RBI and hike the fd interest rates for shorter tfs. The impulse volumes will reduce significantly.
Sadly , they are looking to loot more sideways :confused:

Whatever they want to do, they should do it and leave it for five years. In the last few years, there have been so many changes that testing and scaling a strategy has become impossible.

1722338139306.pdf (508.9 KB)

Now they are saying intraday traders also loose money .I dont understand in any competitive field more or less stats will be same in zero sum game how all can win ?

Why can’t sebi propose to have all expiry on Friday?

I think having daily expiry causes this issues.