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No less than this man will get it.
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Which is strictly what the issue is on this nation. There isn’t any actual platform or avenue that most people can resort in the event that they face a problem. PILs and such are too sophisticated for the typical particular person to method with.
Whether or not folks make are making smart trades or not or how educated they’re is none of SEBI’s concern.
Additionally nobody ought to belief the federal government a lot as to assume they they’ve the very best curiosity in thoughts.
This I consider may very well be executed. Defining eligibility on the idea of information and screening potential shoppers for the activation of a specific phase is one thing everybody can reside with. It’s the way it’s executed in developed nations as properly. However I consider crying out ‘retail merchants dangerous’ and stifling/hindering ease of buying and selling within the identify of security is the regressive approach of fixing the difficulty. However I’m afraid SEBI might not provide you with greatest resolution in spite of everything.
Right here individuals are offended with me as a result of I consider that no matter restrictions SEBI is inserting on retailers to limit them from getting into f&o is in their very own curiosity
That is the actual drawback. Folks will give all types of causes however received’t agree that staying away from Derivatives is for their very own good. Legends like Warren Buffett have even referred to as it weapons of mass destruction.
And that’s the rationale SEBI has provide you with all sorrts of non sense guidelines to save lots of these ignorant of us.
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Maybe you might be ignorant ? Its harmful for brand spanking new folks, for individuals who haven’t any self management and who haven’t executed the work, who use an excessive amount of leverage, who should not diversified sufficient.
He/his agency makes use of derivatives apparently.
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We want within the inventory market individuals who commerce the market and does so profitably. We want individuals who can encourage folks in to this line of exercise. In each subject there might be individuals who tried and failed. Who tried and located it powerful. However that’s no motive to ban entry of the remaining.
Folks have died taking part in cricket. So are the regulators going to cease kids from taking over cricket
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I do know that his agency trades derivatives. I consider that Derivatives are for large guys and Establishments and never for small folks like us.
And I do think about myself not solely ignorant but in addition silly. I’ve heard that f&o is zero sum recreation and 90% right here lose cash. So I by no means dared to strive my fingers on it as a result of I do know that I’m not that a lot smart to be in high 10%
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There isn’t any ‘us’. I’m me, you might be you. Everybody has his personal set of beliefs and skills and never everybody has to commerce. What you say might make sense for you however It’s potential to be worthwhile with managed danger, and i’m worthwhile and so are others. Solely level is to not put the ban hammer on all of us within the identify of safety and provides entry solely to establishments.
However anyway, these are pointless arguments. SEBI has not executed something but and we have now had a change of guard. We already received smart change in peak margin rule after that. So hopefully they may provide you with smart rules that forestall newbies from making deadly errors out of ignorance greed and overconfidence whereas leaving us alone.
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They don’t wish to see one other harshad mehta or any wealthy inexperienced man taking lakhs of mortgage from financial institution and doing pump & dump scheme available in the market. Frankly not like what majority assume they don’t thoughts all the large whales, some guys and banks doing value manipulation.
They’re simply afraid if losses exceed an excessive amount of, all the blokes on leverage(took mortgage from financial institution as private mortgage or credit score) may default and may trigger a financial institution run which could flip into recession. Laws are joke. Most they could do is see you probably have cibil rating or see what liabilities you’ve got or the place the buying and selling funds are coming as an alternative of banning it fully.
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Regulators are so anxious about me. that they want me good well being yearly! even personally cheer me up when
I incurr constant losses.
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When SEBI got here up with margin improve everybody was in opposition to it. Now it appears like an superior resolution.
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Precisely. Everybody has their very own buying and selling/investing model. Some may desire tradional long run fairness investing. Others may desire Momentum buying and selling whereas some might desire to execute complicated hedging methods. Everybody has received their very own distinctive urge for food and I simply don’t consider any explicit model ought to get referred to as out as being akin to being playing so long as the person is properly conscious of the danger he/she is taking. And if somebody has discovered an edge in a specific model, why ought to they not pursue it to make a profession out of? What’s flawed in conducting a speculative enterprise?
I do know most would say that it doesn’t present any client worth however that’s a really subjective argument.
Like I stated, not every little thing is black and white. Even when 90% or 95% folks lose in derivatives(folks lose in investing however let’s put that apart), that’s completely regular. Reason behind the truth that solely few can achieve a given subject. However by bringing in pointless guidelines and rules, the expansion of the few profitable could be stifled which might doubtlessly go on discover new concepts and encourage people who wish to observe their path. That’s mainly what I’m saying.
So far as derivatives being weapons of mass destruction go, inform buffett derivatives are an efficient strategy to hedge your portfolio when executed proper and it truly reduces danger in a given system. In fact the important thing phrase is “when executed proper.” Even a knife is a weapon of destruction when not dealt with correctly. However for derivatives to work, we’d like liquidity and participation however apparently that doesn’t appear to be welcome in SEBI’s view.
@nithin I anticipate inputs on this.
Product Suitability Framework appears to be within the works once more…
After the flurry of mid 2018 information protection, issues appeared to cool down, unsure precisely what occurred.
It appears that there’s some current exercise on this house since final 12 months, extra just lately final month. The beneath article is from April 2022:
“The assembly sparked hypothesis that the Securities and Alternate Board of India (Sebi) might have unofficially nudged NSE to start out the groundwork for the contentious product suitability framework for particular person buyers, a proposal that brokers had strongly opposed.
Within the assembly, NSE sought brokers’ suggestions on the steps that have to be taken to make sure that retail merchants have the information and wherewithal to punt in futures and choices, stated the folks cited above.”
After 20 years of introducing f&o they’re questioning whether or not we retail learn about f&o. We all know that futures have future and choices give loads of choices
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