Futures and Options: India's SEBI Makes Moves to Curb F&O Trading | Vantage with Palki Sharma
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- Опубликовано: 8 сен 2024
- Futures and Options: India's SEBI Makes Moves to Curb F&O Trading | Vantage with Palki Sharma
SEBI, the watchdog of the Indian stock market has proposed some measures to curb speculative trading in the index derivatives. Some of the suggestions are increasing the minimum contract size and asking the stock exchanges such as BSE and NSE to give fewer trading contracts. The aim is to contain risk within future and options trading, also known as derivative trading. Recent trends indicate a rise in derivative trading in India. In 2022, investors lost around $5.4 million. In 2023, 85 billion options contracts were traded in India. India's Reserve Bank is also worried as investors are borrowing money to speculate in the market. Palki Sharma tells you more.
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India | Stock Market | Nifty | Sensex | Share Trading | SEBI | Future & Options | Firstpost | World News | News Live | Vantage | Palki Sharma | News
#sebi #stockmarket #futureoptiontrading #sensextoday #nifty #sensex #firstpost #vantageonfirstpost #palkisharma #worldnews
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If government is so worried about people losing money then ban gambling and betting and so called fantasy sports companies in India. This is just being done for big market players under the guise of concern for citizens. Traders are adults, they lose or not is not the concern of government.
Bro government wants money from taxes
Nah, she just wants money to be in banks, so they can give loans.
If banks lose money from FD, then the intrest rate will rise for loans, and again people like will cry about it. Think from both perspective.
Not everyone is smart! Majority if them are dumb, make 20 and lose 80. So, gov is right!
Please don't call options trading as Gamble.
Apparently a lot of retailers came in and shook the derivative market, nifty was going strong while the big guns sold heavily and they want the control back. Probably a stupid move. Why the hell a person will put money in FD for less interest and high tax
So you are saying, Nithin Kamath is wrong who said that 91% people are losing money in derivatives.
According to you, billion dollars hedge fund and mutual fund industry is stupid and they don't have enough money, so they lose control on Market because of retail investors 😂
You think, FM is idiot or rbi is idiot? Or sebi who warns retailers about F&O investment?
@@pratik4309 yes they're idiots. With high taxes on everything with a minimum wages people will do anything make money none of the above entities do any good for the people in the middle and for the people who gamble with money in stock market you know you are destined to fail with greed high as mountain.
@@pratik4309 stop licking their arses with the data they put out. See things around you and question why people do what they do. That's what drive the stock market. Emotions and sentiments
@@TheMaverick_SR first you should know your aukad before calling stupid to those who have years of experience.
High taxes on minimum wages people? Do you even what is happening, it is only 5% tax if you are earning between 3-7 lakh per annum. In calculation. No tax between 0 - 3 lakh, deduction is increased from 50k to 75k, so if you deduct 75k from 7 lakh, You are only paying ₹16,250 out of 7 lakh earning per year. ( 5% on 3,25,000)
I dont understand on what basis you are saying taxes are high, apart from this i agree that STCG tax is very high, but what about those people who borrow loans from bank? If Bank stays out of money then the intrest rates will rise, and people like you will cry again. STCG taxes are increased by government so that people can invest in FD and those 91% people dont lose money in derivatives.
Do even know whats the impact happen on economy when the rates shoot up?😂
Chal ab soja, aur khudko intelligent samajhna band kar
retail investers are making money in F&O and People no longer rely on FD for returns. If trend continues FD'S could become past. this is what hurts Government.
Big players do not like that small middle class people understanding the trading and making good amount money. Big players are scared of it.
If you wants to put restriction on F&O , do it but just don't say you are doing it to help retail investers. Retail knows what is good for them and what is not.
Retailers are adults. What's important is to make sure the funding source is not questionable. Margin requirements are to be based on risk exposure of the trade.
Total silent on Broker glitches. After all, bribes are paid on time, i guess.
Zerodha was missing on the screen
there is technicals behind trading also, if some people don't follow tecnicals and disciple etc, they loose just like any other business. SEBI is doing not for the benefits of retailers but for the big corporates.
What about Dream 11 and rummycircle
according to government and sebi Gambling apps are more safer than future and option trading. or they are proving FD return for gamblers😂😂
If government really care about retail traders then ban on such gambling apps
What about loan apps in near future India goes into debt trap
What about junglee rummy etc
She has nothing to say about such batting apps like junglee rummy,, my 11 circle , dream 11.. they only want to stop F&O which is regulated by them only
It obviously comes under "wise" investments bro.. Obviously. 😅😅
Biggest reason for this surge in derivatives is introduction of daily expires by SEBI ...don't know wt else were they expecting after introducing daily expiry...hasty decisions took by SEBI it should be held responsible for all this mess
Bottom line the action by SEBI is because the volumes dried up on regular stocks. This is making big investors worried. They want to get retail traders back in there for them to get stocks on discounted prices.
With 90% of retail traders playing in option, they are unable to conduct the business the way they want. Moreover, institutions are not able to hedge the way they used to as the heavy participation of retail traders are causing a lot of sudden unwindings.
People will only start moving to Delta exchange if all this is implemented, and more damage is instored for all.
Correct!
Gambling?? Seriously?? If u guys call gambling to the stock market or specially the FNO segment, then what else u will gonna call to dream11, or jungle rummy
Stock market specially the Fno segment is not gambling, it is just like transferring money from impatience people to patience people that's it
Put restrictions on institutional traders, not on retail traders. We lost a lot of money. Is the government going to refund that money? If you are not allowing retail traders into the market, then why do you even bother keeping the derivatives market at all?
If you are losing it better stop it bro.
Futures and Options are gambling for those who don't understand market , banking, economy and business. Learn price action, market auction theory, macro economy, monetary policies, risk management. Then it won't be gambling.
If SEBI STT on loses 20-30% retail traders will become profitable. If government brings petrol under GST petrol will be 50% cheap.
You should put detailed figures in which F&O people are investing. Is it in indexes or stocks?
I think raising margins will fail to limit retailer losses. As a student learning futures and options with just one lot, I'm gaining hands-on experience and plan to pursue this seriously in the future 'if it worksout'. Many young people like me want to try F&O trading after the advantages heard and to experience something new. Just increasing margins won't reduce losses and won't help nurture good retail traders.
A better solution would be introducing paper trading for F&O, which all brokers should offer within their apps. Additionally, providing proper warnings for beginners before they trade F&O and educating them would be beneficial. These are the steps I believe should be implemented in the market.
a country's stock market is a good reflection of 10% of its population
Why does this govt hate middle class so much?
Hi Palki, There is other way to protect retailers like you an me.
1. Ask why multiple expires. Weekly once is enough- Govt. want tax and rich wants gambling to be continued
2. Why contract price increased- So retailers not sell options; only rich can.. Does this give fair chance all.. big question.
3. If someone losing money then restrict him to trade in FnO
4. Ask sebi to train or arrange exam for qualify trading and then allow to open demate AC
5. Ask sebi to stop gambling apps (rather than wondering about trading apps which seems to be made by middle class personnel perspective)which are getting promoted by film star and sports peoples. So that money could get routed to Market to support Indian business by buying stocks and rather than FnO trade.
in that sense, everything is gambling..even so called investing and FDs.. You never know the outcome for sure...Atleast in derivatives, you can control it and know what is the max loss..Its just a drama to mint more taxes.. Retailers initially will lose money for sure in the beginning, but they eventually gain experience and things will be okay..Its been like that in other fields also, Even in another profession, the one who suffers the most the the beginners. So, pls stop this drama that sebi and govt cares for retailers.
Whtever speculation is being said here is out of sheer ignorance on derivative trading...its bullshit ...derivative is not gamble...btw i never believed when people say that wen women rule they gonna take it to ruins..n now FM n Sebi are proving it to be true
Investment or trading should be only out of savings of a person. Borrowing for either investing or trading is the height of stupidity. That way lies the road to ruin. It is safer to invest in stocks and mutual funds and wait for five to eight years. But in these days of demand for instant gratification, not many have such patience.
Correct your facts
It’s not gamble ,, it takes lot of research ,, I was your subscriber but now I won’t be ,, don’t spread misleading information
I’m a trader myself and can’t take such commentary from those who don’t know abc of trading
This is the first time I am with opposition because this government doesn’t care about small individuals doing future & option trading , they charge hefty money in the name of STT and sebi transactions charges and so on . This charges breaking our back and government has raised those charges in this budget. Bik gai hai sarkar. Ex bjp supporter.
Dear Firstport, please first fix all your new batch of videos. 1/3rd of it is total crap promo reel of FP. Stop it please
Correct
Very annoying
I used to skip vdo when I saw Allison Grange
Now big sharks dont want retailers to make money😂govt works as a broker for them
Covid taught that You may be Businessman, Salaried, Self employeed, Unemployeed anything. If you know trading, you can survive. Rich anyway do it. But band of Lower middle class to Upper middle class 'Need' it more. Best safety for retailers is Quality education of markets and Fair environment to trade. Unfortunately Markets are seen negatively by regulaotors themselves.
Rules+India: these two words do not and CANNOT be mixed together. It doesn't apply to Indian standards.
SEBI Chief and Finance ministers Should be profitable traders themselves to know the things. They cant simply say, We dont trade ourselves and skip.
If sebi wants to help retail investors, why cant sebi do auto stoploss for everyone, on every trade.🤣
Sibi or government or opposition don't care about you especially if you are from general community.
One day they will take your property too in the name of helping development of sc-st-obc and media will try to convince you that government policies are all perfect and you must follow them .
Nobody talks about retailers making profits. Gov is worried about retailers profits and not losses. Gov raised tax on F&O as retailers are earning. The loss in this context basically risk to rewards. When retailer's stop loss is hit, in accumulation these losses are counted towards big loss which is wrong.
very true. Wide retail participation makes it difficult to Pump and Dump if anyone doing it purposely. Total Retailer volume should be many times the investment capacity of top investment funds globally. I m not sure if this will be possible but high retailer volume is fine check on manipulators.
If SEBI thinks that expiry day trading on options are like casinos, then we love to lose money to casinos.
Liverage should be good, margin requirements should be optimum and based on technical calculations of Credit / debit / calendar spreads. Daily expiry in various instruments should continue. Remain competitive with Delta exchange. Dont work so poorly that Delta will become forced option to traders. Traders moving out means liquidity gone. Long term investors would suffer too.
It's gamble from SEBI played by rich options sellers through Corrupt 😂.
Additional Upfront margins for Long options if collected will Only Lower the ROC and Drop trading volumes. This has no technical base. If this is to be done then Collect zero taxes from us. We shouldnt bother dropping Return on Capital, Gov shouldnt bother drop in tax collection.
Rightly said
Government should be worried about betting apps rather than stock market apps, option is not gambling you have to read charts and patterns. apps like Dream11, are gambling apps. Government should be worried about pollution, population and health. Ban ciggarrates completely, ban alcohol, ban plastic.
Every public figure from polytician to actor & sportsman in an influencer. Financial or any other field content makers are not exception. People benifit from good contents too. Not always loose. Those who loose should take the responsibility of not properly analysing and filtering contents. Finfluencer or influencer haters are usually the Blind Followers who bang.
If middle class family has higher demands for any reason from medical to education, retirement planning that can not fit in conservative methods including Mutual funds Which need good amount of holding period then that family is bound to suffer. If member of such family has skills and some risk appetite then Futures and options open a way hope hope. Its not guaranteed but still it gives some scope for solution in seemingly impossible economics. If that person treats futures and options as business and enters with proper education, he is most likely to achieve his goal. Something thar mutual fund manager do himself. Look, education and risk management is a key here. This is exactly a difference bstween risky business and pure casino gambling. Absolutely Futures and options are meant for middle class as well. but to start slow and steady with proper education is essential.
With in a min after placing trade in option buying I lost 60,000 at that time I realised this is not my cup of tea. Better to trade in stocks
Busiesses bring IPOs cos they cant go on raising high amounts of Loans with co-lateral security provided to banks. But growth demands the funds. So High Growth for high Risk is proposal at the base of origin of stock markets.This win win proposal allowed businesses to grow big globally, at the same time people investing in it. Those who do not appreciate high risk in stock market have not undertood these dynamics. High Risk high growth is not forced on anybody. Its about voluntary participation that makes the base deal fair.
Again the direct market participation is voluntary. Its not AADHAR Card Where you will face entry restrictions cos you dont trade. Its not necessary that everybody should trade. But leave to experience and choice of people. If Sebi has lot of time and wish to do something then start working on technology glitches, broker efficiency, participation of very large mutual funds who can shake the market in a minute. Foreign or domestic no matter. May there can be a policy on upper side of investment volumes.
The moment insurance co. collects 2nd premium it should be established that they are ok with patient history provided & would support the clain in need. crack down at right place.
At least betting on the stock market is a free will / option for the retail investors / middle class. But what about forceful betting on the Indian Development Dream.....open robbery by the GOI in way of various taxes?
Crack down on Gambling of Insurance companies the way they collect premiums without early checks of data and surprise reasons for claim rejection.
It’s not a gamble! It’s takes so much of learning & experience to become a profitable f&o trader! so pathetic to see this kind of view from govt.
Palki, this video shows how little you and your team know about finance..
Stock market is a growth engine for businesses. IT IS NOT A SAFE HEAVEN FOR CONSERVATIVE INVESTORS. First stock market in the World served businesses to Grow Who had limitations in borrowings against co-lateral. Those Who were ok to take risk came together fot Mutual Growth.Those Grwowing MNCs contributed exponential Economic Growth of Country and so the huge employment creation as well. Something that conservative approach could never do in banking framework.Seeing the success of Amsterdam Stock exchange, Netherlands in 1602, literally Every country started to form their own modern Stock Exchange. Global businesses and MNCs became regular success stories. Indian Regulator and conservative minds have not understood the core. They will End Up killing the Growth prospects of businesses, humble to rich individual investor and nation too. Low risk investors should NOT Step into stock market. They have risk diversified Mutual Funds with combination of Debt funds.
Now lets see where speculation can be and should be reduced. It must be reduced in Agriculture. Farmers must know the grain stocks held by wholesale merchants and 90% accurate demand of crops based previous sales figures and inputs of retail shopkeepers and Wholesale merchants through Govt. Why should they speculate blind to grow excess crops to not receive right price in open market and no support price either. Excess supply is a simple market phenomena but possible to control. On the other hand if there is shortage, the common man will end up paying high prices for vegetables and grains.Even in this situation, the farmer dont get sparkling prices cos merchants take the most cream. But demand based crop planning is a solution which begins with curbing a speculation where it needs to be. Who has daring to these much needed changes? Give merchants the decent margins. Not less not more. I m not against merchants either.Sebi like approach is needed here. Can Gov do it? But What sebi is doing in financial markets is just retarding the growth engine. Hitting at wtong place. Any counter arguments from those who support sebi proposal?
Best way to curb retailers loosing money is not imposing hurdles, but education. Only after passing a derivatives exam one should be allowed.
Oh Madam, why don't you do a detailed analysis of a private sector salaried lower middle class person with a family load of 7 people. (Keeping in mind the current tax policy)
When will insurance regulatory body ask the insurance companies to wind up their business as most insurance policies sold don't result into a claim and the policyholder loses all the premium. It's another thing that he enjoys piece of mind during coverage period. In a zero sum game segment how can even one expect that everyone would make profits; considering trading charges it is a negative sum game in fact. Someone who bought option to hedge portfolio enjoyed peace of mind at a cost, who sold this option took a risk and earned this premium. Would it be valid argument if insurance policy holders start complaining after coverage period that they lost the premium because the eventuality did not happen.
It is imperative and interesting to see who is protecting whose interest. The problem statement and actions taken is not matching at all. Most traders are losing money in intraday and expiry trades. It looks like FM and inturn Sebi is focusing on keeping the Middle class out and giving rich class more advantage through this measure. As days pass by the pattern is clearly indicating governments stance against middle class and enlargement of rich and middle class divide. This move will make F&O and inturn risk mitigation and hedging opportunity only for rich class. And the toothless middle class suffers. So asking again whose interest this is serving? Why don't ban intraday then? Instead of making this middle class and rich class divide?
Becoming rich is not easy at all from stocks
Please do proper research as F&O is not gambling. Just becuase people lose money doesnt mean it should stopped as people with knowledge and experience make money too. Everything in life is risky, even starting a business like a restaurant has 80% failure rate.
And the F&O trading is happening more on Indices and not stocks FYI
The millioners fear of losing money to trading people
Definitely these are not good for us, I don't know they are thinking exactly opposite.
real truth will take time to come out.......
Markets showing u something nothing else ❤❤🎉🎉 u won't get it guys
This story could have been done far better, I guess, but one can't squeeze in much in a 5 odd minute video. Futures and options certainly are complex products. The more you delve into their study, the more you learn.
Are you sure this gov.wants to protect relairs???
Why dont this gov.tax Fiis in fno gains ?
Mrs. Nirmala Seetharaman said "F & O is not for Middle class".. I say she is absolutely correct. She is being unfairly blamed.
Only big investors and financial institutions need to play the game......and the retailers should just sit and watch their game....is that what you mean to say... 😅 Well all those big bucks were once nothing but retailers..... No body hit the fortunes over the night.......
After covid retailers have done more profit ask sebi to show the data after covid .. govt of india and sebi dont want people to become rich .😂😂😂😂😂😂 ..
@Samrajput ,
I m bit dissappointed too (bjp supporter even today). Instead on increasing trading cost with STT making profits thinner in already risky environment, It would have been better to slightly increase income tax cos that counts affer good work is done. If you are a loss maker or learner at least you will not be charged earlier. I have no doubt about good intentions of Gov.They have increased defence budget a most welcoming thing. I buy your point that policy makers are unable to understand small investor or traders needs and constraints.
Why are you silent on Hidenburg 😊
sebi should also release a report on who's making money from this instruments ?
A:Tring Tring, connect me to Yamlok, Speaking from Earth. ...B: Yes this is Yamlok, speak. A: Well, We suggest you choose One of Week days to expire human life and One day for Animal life. Nowadays on earth We don' appreciate Daily expiry. # Khelo India Khelo :) Drama Sequence by a Drama writer.
Postal deposit....bank deposit...safe
Have you ever considered talking to a mid level successful trader?
You just took whatever that buch lady narrated you and are speaking her language....
For the first time, Palki you are not well researched on this.....
You should also ask the SEBI, out of the losses that they reported for household, what % of the loss is STT, EXCHANGE TRANSACTION CHARGE, GST & OTHER CHARGES??
Retail investors =if they make profit. Pat their own back(I am smart)
If they make loss.. Govt is bad.. Operator screwed me.
The government and sebi doesn't want middle class to make money 😂😂😂. Everyone want middleclass to stay and suffer for the rest of their lives!
Speculation can not be completely eliminated as its part of Life. It can be reduced where it should be and allowed or tolerated too Where it needs to be. We ll see both cases. You speculate a war possibility and 'Increase a Defence budget'. Do you think its incorrect? Do you think it is avoidable?
A shopkeepere speculates the sale and bring goods in shop on credit in abc quantity paying some deposit to Wholesaler. Unsold goods are returned, higher demand goods are ordered in greater quantity. Its continuous business process. To skip the speculation a shop keeper need precise sales forecast or No counter sale policy. Sale against prior order only. Its not customer friendly every time and not practical. A student speculates greater job propspects While choosing higher education stream. I can give 50 more examples of real life. Saying Complete No to speculation is saying no to a free life. Trading a is a business, investing too is a business. Conservative minds doing safe job all the time cant appreciate this but sit to draft policies.
FinFluencers effect is growing, so should be their accountability. I hate influencers.
Recently i saw people calling themselves middle class people and putting their money in options
Exactly. If u r middleclass, u shouldn't have money to put in options
To become rich but ending up in rags
@@jojosoni it's not you shouldn't it's like you can't because you need to buy a home settle kids and other stuff.
Options are nothing but gambling and you need extra money if you are doing it daily or monthly means you have enough savings and extra money
If they can earn some money from it ,what's the problem? If Government was so much concerned about it's citizens, juban kesri gutka, daru etc would've been banned.
Is it ok to lose money to international casinos.
But they all are loosing their own money with thier own will jbrdasti care kyu kr rhe yaar
TIME WILL SPEAK IV NEED TO CONCERTATE
Lost all of it in F&O
If they want to curb f & o, then just stop trading
India stock market is so overvalued that everybody thinks to retire early by investing into any stocks via mutual funds
MADRAS SAPPERS always great
ME TOO INTO LOSS
The market is running with speculation. People r treating it as gambling instead of investment
Propaganda queen love lies
One more reason to move out of India thank you Indian Government
Help me like my brother
Gambling = BJP in power 😂😂😂 (POV - EVM)
Bull run next week
Good move by SEBI, this should have been done long ago, finally they woke up, dumb retail investors no nothing abt F&O
They are adults ....sebi shouldn't intervene in adults decision....
@@skhustler you want 90% adults to commit financial suicide?