This discussion has been going on from years but SEBI may finally take some drastic steps to curb excessive retail trading in F&O
If this happens, the industry will have drastic changes and the implications will be crazy.
2 Likes
Currently in our country any one can start a business without even proper education or net worth (apart from some specific sectors). FnO trading is really a business activity. I am hopeful that some sanity will prevail. I am hopeful that the retail would be left alone to their freedom to choose, take risk and trade the market.
Current SEBI chair sometime ago
3 Likes
Also in the budget they are increasing the STT forecast every year ,but here SEBI is trying to control retail .
How exactly the brokers will determine networth? They are not a tax agency, ITR and bank statements can not be accurate parameter of networth.
1 Like
SEBI is probably seeing all the retail traders and thinking like all are shouting BACHAOO and they decided… OK!!
1 Like
If retail does not make losses then how the institutions will make profit?
They should do based on minimum deposit.
1 Like
Exactly, so the reason they said physical settlement… take an example of this series, Pharma was rocking… Lupin 980 ce was available at 0.3 Paisa … it went and hit 10 rs… almost every Pharma share behaved same way…
If it want to protect retail investors they can allow for cash settlement and anyone can trade freely with minimum investment…
They won’t do that and they say they are protecting …
What happened to n no of companies where retail investors lost by buying equity…the list is vvv long … they don’t take action nir allocate shares when it goes for nclt …
But they want to protect now . … few things never change…
1 Like
Both physical and cash settlement have their respective drawbacks.
By considering the other side of the equation, it becomes evident that cash settlement tends to encourage speculative trading and market manipulation, while physical settlement offers more stability, as it is supported by actual shares, and fosters better price discovery. This physical route is often preferred by long-term investors seeking a more reliable and transparent approach.