SEBI EXTREME LOSS MARGIN
Sebi¡¯s new framework on index derivatives kicks off, first leg live today
Sebi's six-step framework for index derivatives officially began on November 20, with the first leg going live. The new rules impose higher margin requirements for index derivatives expiring on the same day, with a 2% increase in the Extreme Loss Margin (ELM). This marks the start of SEBI¡¯s phased approach to improve risk management and streamline derivatives trading, set for full implementation by April 2025.
Fee-based biz helped Share India grow Q2 numbers; to focus on retail business going forward: Sachin Gupta
Share India Securities CEO Sachin Gupta, discusses the company's strong Q2 performance, attributing its growth to a focus on retail business, margin trading facilities (MTF), and merchant banking. Gupta highlights the success of their institutional desk and outlines plans to expand into wealth management services, including AIF and PMS offerings.
US elections: Tim Walz heading for home-state loss in Minnesota? Here's what a new poll says
Tim Walz may end up being handed a loss in his home state Minnesota in the upcoming US elections, which could prove to be costly for Kamala Harris and the Democratic Party as well. Here's what can lead to this loss in this key state, with significant political importance.
F&O cannot be a national pastime, says Sebi member Ashwani Bhatia
Sebi's Ashwani Bhatia said India's F&O volumes are the largest globally, but F&O cannot be a national pastime. Investors should participate in wealth creation through mutual funds or directly. Sebi study highlighted that 93% of individual F&O traders lost money from FY22¨CFY24.
Sebi raises contract size and limits options to curb retail trading risks
The Securities and Exchange Board of India (Sebi) Tuesday increased the minimum contract size in index derivatives to Rs 15 lakh from the current Rs 5 lakh, making options trading costlier. At the same time, it reduced weekly index product offerings to just one per exchange, seeking to curb frenzied speculation among retail traders.
F&O clampdown: How will Sebi's new rules affect traders and brokers
Sebi has introduced six measures to regulate the derivatives market and curb speculative trading. These include upfront collection of options premiums, intraday monitoring of position limits, and increasing contract sizes. These steps aim to protect retail investors, reduce market volatility, and stabilize trading dynamics between November 2024 and April 2025.
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How Sebi¡¯s new F&O rules will help protect loss-making retail traders
SEBI has introduced measures to curb risks in F&O trading, requiring upfront premiums, increasing contract sizes, and limiting weekly expiries to protect retail investors.
Sunil Subramaniam on how SEBI's move could shape retail trading
Overall, it is good that the regulator is showing oversight over this, demonstrating it through actions and that should have a good signalling effect to the market I think in that perspective.
BSE to retain weekly options linked to Sensex after new rules for derivatives: Report
BSE will keep weekly derivative contracts for the Sensex. SEBI has tightened rules, allowing only one weekly options contract from Nov. 20. This follows a rise in retail investors trading options and concerns over household finances. BSE's Sensex has higher volumes than Bankex, thus Sensex will be retained for weekly expiry.
Angel One shares jump over 7% as investors find silver lining in Sebi order
Shares of Angel One rose 7.4% on the BSE. Investors expect gains from Sebi's new F&O market regulations. The regulations may weaken smaller players, boosting bigger firms. Angel One may increase fees or absorb margin impacts. Past customer acquisition helped offset slowdowns. Long-term growth expected in financial products distribution, wealth management, and AMC.
How SEBI¡¯s regulations will reshape investor behavior and market flow? Sudip Bandyopadhyay answers
As far as the brokerages are concerned, they will get impacted. Their income will get impacted. But I think as is being told, I think these are for the good and structural benefit of the market in the long run. So, I am not too worried about the market as far as long run is concerned or the impact of these measures on the overall market in the long run or even medium term.
Angel One shares in focus after Sebi restrictions on F&O trading
Sebi's new regulations on derivatives trading, including increased contract size and limiting weekly expiries, are expected to impact brokers like Angel One. Effective from November 20, the measures aim to curb speculative trading, following a study revealing significant losses for individual traders in the F&O segment.
Stock broking startup Dhan clocks maiden profits of Rs 155 crore in FY24; revenue jumps 600% on year
The startup is in talks with investors for raising a fresh equity funding round and is looking to expand its product offerings. The company expects a 25-30% impact on its gross revenue due to the recent regulatory actions on the highly speculative futures and options market by the markets regulator.
For a secure future, Sebi opts for tighter F&O rules
The Securities and Exchange Board of India (Sebi) Tuesday increased the minimum contract size in index derivatives to ?15 lakh from the current ?5 lakh, making options trading costlier. At the same time, it reduced weekly index product offerings to just one per exchange, seeking to curb frenzied speculation among retail traders.
Sebi announces 6-step framework to get Indians rid of F&O addiction
To curb excessive speculation in the stock market, Sebi is tightening the rules for futures and options (F&O) trading. Starting November 20th, the minimum amount needed to invest in index F&O contracts will increase significantly. Currently, investors can participate with as little as Rs 5-10 lakh. This threshold will be raised to Rs 15 lakh, making these contracts less accessible to smaller investors. Sebi will also periodically adjust this minimum investment amount to ensure it stays between Rs 15 lakh and Rs 20 lakh.
Sebi to take measure for F&O segment soon; calls for tax breaks on municipal bonds
Sebi plans to enhance investor protection in the Futures and Options (F&O) segment with new measures. The regulator has also requested tax breaks for subscribers of municipal bonds. Proposed changes in F&O rules include revising minimum contract sizes and intraday position monitoring to improve risk management and transparency. Sebi's study showed significant trader losses in the F&O market.
From sachetization to safarization: How to protect the options trader
HUL's sachet revolutionized FMCG, but proliferation led to environmental concerns. F&O market, once exclusive, became accessible, leading to a surge in participation and losses. SEBI's proposed NAC could provide a safer alternative for derivatives traders
Options trading: Can retail traders actually make money in a zero-sum game?
SEBI¡¯s study highlights several important findings that shed light on emerging trading patterns in India. Some of these observations challenge common misconceptions and provide much-needed reality checks.
AK Purwar on how IIFL Finance navigated challenges of RBI Ban and planned for recovery
?It is sometimes very disturbing. So, I used to feel very disturbed. But as a banker, if you ask me, I mean, my qualification is as a banker. So, as a banker, I used to feel very happy inside that we have very extremely professional regulator who would not let go a thing unless and until they have more than 200% satisfied themselves on whether the rectifications have been properly carried out, number one. Number two, whether those rectifications will sustain over a long period of time. And number three, that the organisation has learned its lessons.
Extreme Bull Market: No fear in the market but there¡¯s greed in all sectors except financials, says S Naren
S Naren, ED & CIO, ICICI Prudential AMC discusses the current bull market, which began in March 2023 due to attractive equity taxation. He highlights the role of liquidity and the potential for continued market growth if supply does not catch up with demand. Naren also advises caution in deploying new money.
Sebi tweaks framework on margin trading facilities
To promote ease of doing business, markets regulator Sebi on Wednesday allowed securities funded through cash collateral to be considered as maintenance margin for margin trading facility (MTF).
Dish TV records net loss of Rs 1.6 crore in Q1
Dish TV Q1 Results: Dish TV experienced a net loss of Rs 1.6 crore in the June quarter, a significant decline from the Rs 21 crore profit in the same period last year. Operating revenue fell by 9%, mainly due to decreased subscription revenue. The board has approved raising Rs 1,000 crore through various means, including equity shares and debentures.
How wrestlers and boxers lose kilos of weight in hours? Vinesh Phogat¡¯s story sheds light
Vinesh Phogat's disqualification from the Olympics due to being over the weight limit has sparked concerns about the extreme and grueling process of weight cutting in wrestling. Indian boxing legend Vijender Singh suggested that Vinesh¡¯s situation might involve sabotage, as elite athletes like her are well-acquainted with the techniques to rapidly shed weight. The incident draws attention to the intense physical and mental toll athletes endure to meet weight requirements.
How Rs 60,000 cr losses from F&O give banks hope for a savings revival
As India shifts towards high-risk, high-return investment options, households are losing around Rs 60,000 crore annually in derivatives trades. With 92.5 lakh retail investors and proprietorship firms incurring losses, there are concerns about household savings being wasted on speculation. In response, SEBI has introduced a seven-point plan to curb such trades, and the Union Budget includes measures to discourage them. This situation offers banks hope that investors might return to traditional savings options.
Overall earning season turning out to be muted: Sandip Sabharwal
?So, the key will be the resolution of the issues pointed out by RBI and once that happens, that will be sentimentally positive, so that is how it is placed. Overall earning season is turning out to be muted in general.
Paytm Q1 results preview: Revenue may fall by up to 36%, net loss likely to widen
One 97 Communications, operating Paytm, could report a net loss between Rs 1,013 crore and Rs 840 crore and a revenue between Rs 1,532 crore and Rs 1,490 crore for June 2024, according to estimates by two brokerages.
80% of marginal farmers in India affected by adverse climatic events: Report
According to the report, nearly 43 per cent of the surveyed farmers lost at least half of their standing crops. Rice, vegetables, and pulses were particularly affected by uneven rainfall. In the northern states, paddy fields often remain submerged for more than a week, destroying newly planted seedlings.
ETFs trading at abnormal prices due to high volatility: Check this before investing in mutual fund ETF to prevent avoidable loss
Exchange traded funds NAV: The stock market experienced extreme volatility on June 4 and 5 of 2024. As a result of this volatility the market NAV price of many ETFs showed abnormal premiums or discounts to their indicative i-NAV price. Stock broker Zerodha cautions investors to not buy ETFs if its price is trading at a high premium to its i-NAV value.
SBI, Godrej Consumer top buys post Q4 results; could give 13-17% upside in 1 year
SBI and Godrej Consumer are top buys post Q4 results, led by BFSI and Auto sectors. Nifty stocks show growth, while Tier-1 IT companies face challenges. Business and credit growth outlook positive for SBI.
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