Is SEBI's newest proposal the 'magic wand' for F&O trading troubles? Find out how they aim to clean up the act with drastic changes!
The Securities and Exchange Board of India (SEBI) is swinging into action with new proposals aimed at reigning in speculation within the futures and options (F&O) market. With amazing statistics showing around 92.5 lakh retail traders faced losses amounting to a staggering ₹51,689 crores in FY24, the urgency for reform is palpable. The proposed tweaks could see significant shifts in index derivatives contract sizes and the way trading limits are monitored. Could SEBI's intentions be the 'hero' that saves retail investors from a wild and reckless market?
With an eye on ensuring market stability and safeguarding small investors, SEBI's proposals are deemed a game-changer. By tightening regulations surrounding index derivatives, such as implementing mandatory T+0 settlement systems, they plan to combat the chaos that’s left many traders pulling their hair out. Even Nithin Kamath, co-founder of Zerodha, expressed doubts about the effectiveness of proposed changes, hinting at the complex relationship between futures and options trading. But is SEBI ready to put on their superhero cape and tackle the apparent 'F&O mess' head-on?
One has to laugh at the idea that with these new rules, small investors might feel like they are living in a safety bubble. SEBI is also focusing on reducing contract sizes to make the market more accessible, thus encouraging widespread participation without the sweat of speculative risk hanging overhead. For those considering dipping their toes in, the proposed changes are set to drain some of the hyperactivity out of the trade, leading to a more responsible approach toward investments.
As this F&O de-addiction campaign unfolds, it’s intriguing to note that BSE is capitalizing on the situation. With SEBI eliminating some options contracts, the Bombay Stock Exchange is likely to attract traders looking for a hassle-free experience. As statistics continue to flow post-implementation of the new rules, traders may just find that less speculation leads to more successful investing! Did you know? The average retail investor earns only 3-5% from commitment but loses over 25% in speculative trading! SEBI's latest plans seem timely for those investing in their financial futures!
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India Business News: MUMBAI: Sebi chairperson Madhabi Puri Buch on Tuesday said that soon the regulator would put a proposal to its board, ...
The proposed changes include adjustments to the collection of option premiums, revisions to contract sizes, and stricter monitoring of trading limits.
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वायदा बाजार में सट्टेबाजी को करने के लिए SEBI ने नए नियमों का कंसल्टेशन पेपर जारी किया है. मार्केट रेगुलेटर को उम्मीद है कि उसके इन ...
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पूंजी मार्केट रेग्युलेटर सेबी (SEBI) ने बेलगाम हो रहे डेरिवेटिव कारोबार (F&O) को काबू करने के लिए सख्त नियम लाने का प्रस्ताव दिया है।
Ajay Bagga explained that reducing F&O market volumes would increase genuine hedging costs and complexity, thereby reducing volumes and making markets ...
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SEBI has proposed weekly options contracts to be provided on a single benchmark index of an exchange and brokerages to collect option premiums upfront from ...
In a bid to curb excessive speculation and protect investors, the Securities and Exchange Board of India (SEBI) on Tuesday proposed a series of measures to ...
India Business News: On Tuesday, Sebi proposed measures to curb speculative trading in index derivatives, including increasing the minimum contract value to ...
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ऑप्शंस करीब असीमित लीवरेज के साथ आते हैं, जबकि फ्चूचर्स लीवरेज 6 गुना (इंडेक्स के लिए 15%) पर सीमित है: नितिन कामत.
The brokerage lost its membership with BSE after the exchange came to know that the brokerage was running an unregistered PMS.
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स्टॉक मार्केट रेगुलेटर सेबी (SEBI) ने टेस्टाइल, इंजीनियरिंग प्रोडक्ट्स के ट्रेडिंग के बिजनेस से जुड़ी कंपनी बिन्नी लिमिटेड (Binny Ltd) के खिलाफ ...
A study by Kotak Institutional Equities points out that similar curbs were introduced in the derivative markets in Korea and China, which adversely affected ...
Two decades ago, Warren Buffett had warned that derivatives are nothing but time bombs, both for the parties that deal in them and the economic system.