Money control mentions both.
“In its November circular, SEBI said it was aligning margin processes for the derivative and cash market segments.”
It do not refer to intraday fno - as no such thing ever existed.
“This is in stark contrast to the derivatives segment, where clients are required to shell out the various margins at the time of placing their order.”
Whatever be the decision, hope this drama ends tomorrow. It’s worse than watching sgx overnight having naked position!
Now I realise what uncertainty means to a business
There is already discussion on this multiple times on this thread. Not in my control, but I am trying my best to get all the involved parties to take as an aggressive stance as possible, keeping in mind the new development of this intraday leverage.
This is more like regulators cutting retailers throat… So with this even traders who were actually profitable before might find it hard to make any substantial returns
- Due to new Margin policies , There is change in volatility OR drcrease in volatility is possible ?
- Rules are also applicable for Cash Market also ?
- From which date rules will come in application ?
I am Fan of Nitin due to cleanliness of Business and learned many things from your Interviews , Thanks …
Thank you nithin for your support to the trading community.
In a way … this is a historic development in Indian markets. The kind we DON’T need 
If the rule is implemented in fno segment, people will be forced to take through their entire position overnight in search of big moves. Seeing the current economic climate and geopolitical issues, it will be a much much larger risk on a small trader.
This risk will take him out of the market earlier.
These authorities need to be aware of the brutal fact and irreversible costs.
@nithin Since you put forward an example of 1 crore position value (with 16L shortfall), I have a query. You say this step is taken by the regulator to reduce risk so why not offer leverage slabs based on an account’s trade value? For eg, before placing trades, why not build the RMS to check the position value of an account so that if the trade value is say upto 15L, 10-12x leverage can be offered, for trade value between 15-30L 8-10x leverage, for trade value of 50L-1Cr 3-4x leverage and so on. I suppose the data for determining the position slabs can be worked out. That way if a big trader does default, his leverage exposure would be lower and at the same time smaller retail traders (whose position value is not running into crores) can take advantage of the prevailing leverage? I’m strictly speaking for intraday trades, as for overnight positions other elements may come into play. Perhaps you could put forth this argument to the regulators?
This is what the broker community is asking for equity trades, saying upto a certain value of transaction per day, don’t ask upfront margin. The objective here is not for intraday trades but to help those clients/brokers for selling shares from your demat where margin will be required if you trade and if the broker doesn’t have his own demat services (latest SEBI circular that doesn’t affect our customers). But I don’t think they will allow this for F&O. It will be very easy to circumvent this rule by opening up multiple accounts.
Oh. so it seems still nobody is focusing on demand for “intraday leverage in FnO” or “introduction of new margining system asap”.
The focus, like most of the news and articles , is on upfront margin requirement for “selling stocks in portfolio”
Hi… @nithin isn’t the meeting with SEBI scheduled today … please post the outcome of the meeting today itself,so that we can put an end to this drama today itself…
isn’t this just being naïve ?
Just had a conversation with one more broker. The brakerage is international one.
The RM said following:
- Today’s meeting between ANMI and SEBI is mostly regarding “new SEBI regulations about cash segment only”. So nobody is sure if they gonna talk about FnO intraday.
- Even after hearing con-call clip most of then are adamant that “kuch nahi badla hai”!!
- Most discussions ended with “Chalo, thursday tak raah dekh lete hai”
not getting you,you mean the intraday f/o leverage will remain as usual?
I mean as per various news articles and my conversation with brokers -
- In today’s meeting (much discussed and hyped) the confusion and issue of reduced intraday leverage in FnO is not even an issue.
- The official agenda is “cash margin” changes according to SEBI circular.
- The issue with FnO intraday margins occur due to NSE circular and has got nothing to
@Nitihin and NSE says no more leverage.
Other’s playing it cool