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Stock <keyword id="20345915" type="General" weightage="20" keywordseo="exchanges" source="keywords">exchanges</keyword> and <keyword id="20710434" type="General" weightage="20" keywordseo="brokers" source="keywords">brokers</keyword>, catering to retail traders, could be hit hard by the regulator <keyword id="19901201" type="General" weightage="100" keywordseo="Sebi" source="keywords">SEBI</keyword>'s proposed measures for Futures &amp; Options (F&amp;O) <keyword id="22748189" type="General" weightage="20" keywordseo="trading-regulations" source="keywords">trading regulations</keyword>, with market volumes slumping 30-40 %, according to reports. If these measures are implemented, the number of investors could decrease, it added. Moreover, discount brokers, who depend heavily on retail investors, are expected to be more affected than traditional full-service brokers. SEBI, in its consultation paper in July, proposed seven measures, including increasing minimum contract size and upfront collection of option premiums, intra-day monitoring of position limits, rationalisation of strike prices, removal of calendar spread benefit on expiry day and increase in near contract expiry margin. SEBI stated that these measures are aimed at enhancing <keyword id="20775670" type="General" weightage="20" keywordseo="investor-protection" source="keywords">investor protection</keyword> and promoting <keyword id="20813757" type="General" weightage="20" keywordseo="market-stability" source="keywords">market stability</keyword> in derivative markets. According to a report by Jefferies, SEBI's proposed measures to reduce the number of weekly option contracts from 18 to 6 could impact around 35% of industry premiums. However, if trading shifts to the remaining contracts, the overall impact can be reduced to 20-25%. Among its 7 proposed measures, IIFL Securities see the highest impact from the withdrawal of <keyword id="22353333" type="General" weightage="20" keywordseo="weekly-options" source="keywords">weekly options</keyword> (only 1 per exchange allowed) as index Options account for 98% of the volumes. IIFL Securities expects the National Stock Exchange (NSE) to be more affected than the BSE because 60 % of NSE's revenue comes from options trading, compared to 40% for BSE. It estimates that by the financial year 2026, NSE's earnings could be reduced by 25-30% while BSE's earnings could drop by 15-18%. Jefferies also believes that the removal of Bankex weekly contract can impact BSE's earnings per share (EPS) by 7-9% over FY25-27. It further said that BSE might see a small decline in earnings, but if trading activity shifts from discontinued products, it could offset the impact or even lead to earnings growth. "We don't see any impact on MCX from these regulations. Within the value chain, discount brokers are likely to be more impacted than traditional full-service brokers given the former's dependence on retail investors," IIFL Securities said. Jefferies believes that clearing members like Nuvama, which caters to institutional players High-Frequency Traders (HFTs), and Foreign Portfolio Investors (FPIs) are less impacted. Rationalizing weekly options to only one benchmark index per exchange will significantly affect the NSE because it currently has four weekly index expiries, with "Bank Nifty" being the most important, contributing to 50 % of its options volume. The change could reduce NSE's overall trading volumes by 30-35 %, IIFL Securities said. On the other hand, BSE is expected to be less affected since it only has two contracts, with Sensex making up 85 % of its volumes in FY24. Even if "Bankex" contributes 30% by FY26, the impact on BSE's volumes is expected to be smaller compared to NSE, it said. Additionally, with just two expiries, BSE might gain market share and experience higher trading volumes, resulting in an estimated 20 % reduction in its overall volumes, it added. Jefferies said that SEBI's proposed measure of increasing lot sizes by 3-4 times over six months could lead to higher costs for retail traders, potentially reducing their participation in the market. The proposed margin increase for options sellers close to expiry could reduce leverage and profitability, especially for retail traders with limited funds. "Finally other measures like increasing ELM (extreme loss margin) around expiry, and withdrawal of calendar spread margin on expiry will increase the margin requirements and thereby could impact the liquidity. Based on our initial estimates we expect a 30-40 % impact on market volume," IIFL Securities said. SEBI Chief Madhabi Puri Buch recently mentioned that households are losing up to Rs 60,000 crore a year in the problematic futures and options segment. Earlier, SEBI research showed retail traders lose money in nine out of 10 trades in the F&amp;O segment Last month, the government in the Union Budget raised the securities transaction tax (STT) on both futures and options trade from October 1 to allay concerns about hyperactive interest in the derivative segment. Before that, the Economic Survey flagged concerns over rising retail investors' interest in derivative trading. The survey stated that speculative trade has no place in a developing country. It also pointed out that the sharp increase in retail investor participation in F&amp;O trading is likely driven by humans' gambling instincts.

SEBI proposed F&O norms to hit exchanges, brokers, says reports

<div type="image" title="For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire" height="900" width="1200" msid="114064202" hostid="261" caption="&amp;lt;p&amp;gt;For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire&amp;lt;/p&amp;gt;"></div> Once upon a time, there thrived a wild, wild land. Here, it was all about super high monetary stakes, lightning-fast trade deals, and bucketloads of money shifting hands every single second. This wilderness lured millions of individuals with the promise of super duper high returns. But, at what cost? Welcome to the unforgiving, ultra-risky wild west of <keyword id="19991165" type="General" weightage="20" keywordseo="Indian-equity-markets" source="keywords">Indian equity markets</keyword> called the <keyword id="145718" type="General" weightage="100" keywordseo="Futures-and-Options" source="Orion">futures and options</keyword>. Here, everyone seems to just fly right through the bright red-flagged warnings of financial risks to earn even a fraction of these promised returns. Most burn themselves in the process, but carry on nevertheless, as if nothing ever happened. <h2>Chasing the cloudy profits</h2>The data conclusively proves that every 9 out of 10 individuals only lost their hard-earned money in this land. But hey, what do the numbers know? Some hide their losses out of shame, some out of fear. The proponents, meanwhile, proudly boast unusually high returns on their investments, some open social media channels while others encourage their friends and family to take the plunge. Naturally, news of this unstoppable and humongous en-masse migration to the F&amp;O (futures and options) town has reached sheriff <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="261" meta.entityid="SEBI">SEBI</keyword>, galvanising them into action. After all, it was time to put a leash on this madness and save the common man. The inhabitants of this town doubled in the last 2 years, from 51 lakh in FY22 to 96 lakh in FY24—99.8% of whom were small and mid-income traders. But profits? Well, that's a different, rather completely absent story. <h2>Que Sera Sera, much?</h2>A recent report by SEBI (Securities and Exchange Board of India) that studied profits and losses made by traders in the equity derivatives segment between FY22-24 exposed the mad mania of futures and options trading in India, especially since the pandemic. Per the report, 91.1% of individual traders, or about 73 lakh traders had only lost money trading in futures and options in FY24. Between FY 22-24, over 1 crore traders, or about 92.8% of individual traders, had lost Rs 2 lakh each. But once bitten, twice shy? Well, not in this case. More than 75% of individuals, who had only made losses trading in F&amp;O in FY22 and FY23, continued to trade vigorously in FY24 as well, without any changes in the bottom line, which remained deep in red and negative. So, then all these traders must be uber-rich, with tons of cash and not much care to spare? Nope. 76% of traders in the F&amp;O space in FY24 had an annual income of less than Rs 5 lakh. 2 years ago, their share stood at 71%. And their choice of poison? Options! In FY24, 60% of traders made losses trading in futures, but a whopping 91.5% burnt their funds trading in options. Mind you, futures are riskier than options. With futures, which require significant capital investment, the buyer and seller both are contractually bound to adhere to the pre-determined strike price of the futures or options contract, irrespective of whether the prevailing prices are higher or lower (and thus, resulting in losses for either the buyer or seller). With options, since this adherence ain't necessary, individuals end up taking debt to take highly leveraged positions while trading here. <h2>Scale of the explosion</h2>Anyone who trades even infrequently will tell you that a demat account is the mitochondria or powerhouse of the trading cell. As of August 2024, India had over 17.1 crore <keyword id="20957284" type="General" weightage="20" keywordseo="demat-accounts" source="keywords">demat accounts</keyword>, which are a prerequisite for trading in the markets. India is the 9th biggest country in the world, in terms of total demat accounts. Did you know that our demat accounts are at par with the entire population of Bangladesh? Talk about scale! Just 4 years ago, in March 2020, this number was a mere 4 crore. Naturally, the total F&amp;O turnover on both <keyword id="20004725" type="General" weightage="20" keywordseo="NSE" source="keywords" meta.keywordsubtype="org" meta.entityname="NSE" meta.hostid="261" meta.entityid="NSE">NSE</keyword> and BSE has hit the roof, and also broken it. As of October 4, 2024, the total futures and options turnover on NSE stood at a massive Rs 4,78,27,27,750.30 crore. Good luck counting the thousands! <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Turnover (Both Futures and Options) (In Rs Crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64,36,03,951.51 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,69,52,33,134.47 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022-23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,82,23,26,468.06 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023-24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,99,27,67,152.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source : NSE Another metric that underlines the meteoric growth of trading in India is the collection of STT or <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword>. As of September 2024, India's STT mop-up had gone past Rs 26,000 crore. Traders have to pay STT whenever they buy or sell any security in the market. So, more trading brings in more STT, and hence, more revenue for the government, so they're not really complaining. After all, this is certainly what they'd call enviable growth. As of August 2023, our STT collection stood at about Rs 21,599 crores. And in FY20-21, India's STT collection had been Rs 16,000 crore. If only our salaries also managed to grow at this rate! <h2>So, what's happening?</h2>Two things. One, it's the big bulls who are raking in all the moolah. And it's the younger lot (those aged under 30) who are propping them up for this. In FY24, 43% of individual traders in the market were less than 30 years of age. In just one year, this number has swelled by 12 percentage points from just 31% of individual traders. But who says ageing is bad? Wrinkles and silver hair seemingly have a propensity of incurring lesser losses in the market. In FY24, only 79% of traders aged above 60 years made losses, as compared to 93% of those aged below 30. Small and mid-income traders, which make up 98% of the total trader base, witnessed average losses per person of Rs 65,000 and Rs 1.5 lakh in FY24 in futures and options, respectively. The winner here? Clearly, the big bulls, who declared an annual income of over Rs 1 crore, ended up with average profits of Rs 96,000 per person this year. <h2>What’s the sheriff up to?</h2>The government has finally swung into action, hiking the STT rate for F&amp;O during this year’s budget. Effective October 1, 2024, the STT on futures stands at 0.02%, up from 0.0125%. For options, it was upped to 0.1% versus 0.0625% previously. Small margins, but huge impact oncoming. Says Puneet Sharma- CEO and Fund Manager at Whitespace Alpha, “SEBI aims to enhance market stability while safeguarding investor interests, reflecting the regulator's intent to balance risk management with market participation”. But this might come with its own share of challenges, too. “Stricter norms around leverage, transparency, and capital adequacy could limit the ability of investors to determine their own risk appetite, thereby stifling innovation in trading strategies. Over-regulation in an environment that thrives on strategic flexibility and creativity could dampen the market’s dynamism, affecting India's competitiveness in the global derivatives landscape”, he observes. SEBI recently came out with a set of guidelines that aim to thwart <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' participation in futures and options and hinder them from taking undue risks. Here's a quick recap of what's to come for the residents of the F&amp;O town Margin Requirements: To battle the high volatility and chaos which is generally seen on expiry days(i.e the last mandated date, post which an option becomes invalid), SEBI will put in place an extreme loss margin (ELM) of 2% for all open short options on the day of expiry. Translation? Traders will need to pony up more cash upfront, leaving them with fewer funds to take on risky bets. It ain't a choice: No more of one expiry every single day! Going ahead, an exchange like BSE or NSE will just be able to offer weekly expiries, that too, only on one benchmark index, as opposed to an entire buffet it currently offers. At present, NSE offers weekly options contracts for its financial index, bank and midcap indices. But say goodbye to this, and hello to derivatives on only 1 index per exchange. Raising the bar: Effective November 30, 2024, the minimum contract value for index derivatives will be upped to Rs 15 lakh, from the present Rs 5-10 lakh. The hope is that by making it ultra-expensive to enter these trades, investors will be dissuaded from taking on risky trades. Pay upfront: Starting February 2025, those trading in options will have to pay the entire options premium upfront, even before their trades are executed. This is because options generally carry very high leverage, and paying a significant sum upfront can force traders to think twice. Invigilation Pro Max: Starting April 1 2025, to make sure that the number of positions for equity index derivatives does not slyly slip over the mandated limit, especially on expiry days when trade volumes are huge, the exchanges will have to take a minimum of 4 position snapshots randomly. The question is, will these injections of sobriety be enough to calm down the steroid-fed bull of the futures and options market in India? Well, only time and market turnover will tell! For more insights into the financial markets and business news, stay tuned to our site and social media handles. And don’t forget to subscribe to Business Insider India’s newsletters for your weekly dose of Simply Put! Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

New Delhi: Markets regulator <keyword id="19901201" type="General" weightage="100" keywordseo="Sebi" source="keywords">Sebi</keyword> has debarred 14 entities including, <keyword id="22941399" type="General" weightage="20" keywordseo="Rana-Sugars" source="keywords">Rana Sugars</keyword> promoters' and other related entities from the securities markets for two years and slapped a Rs 63-crore fine on them on charges of diversion of funds. The regulator also prohibited Inder Pratap Singh Rana (promoter), Ranjit Singh Rana (Chairman), Veer Pratap Singh Rana (MD), Gurjeet Singh Rana, Karan Pratap Singh Rana, Rajbans Kaur, Preet Inder Singh Rana and <keyword id="22946824" type="General" weightage="20" keywordseo="sukhjinder-kaur" source="keywords">Sukhjinder Kaur</keyword> (promoter) from holding any position as director or key managerial person of any other listed company for two years. Ranjit Singh, Veer Pratap and Sukhjinder Kaur were also the promoters of <keyword id="22946823" type="General" weightage="20" keywordseo="Rana-Sugars-Ltd" source="keywords" meta.keywordsubtype="org" meta.entityname="Rana Sugars Ltd" meta.hostid="345" meta.entityid="Rana Sugars Ltd">Rana Sugars Ltd</keyword>, as per the exchange data. Individually, Sebi imposed penalties in the range of Rs 3 crore to 7 crore on Rana Sugars, its promoters, and other related entities. "I find that noticee No 1 to 9, who are promoters of RSL and beneficiaries of such diversion of funds from RSL, have violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations. "...also find that Noticee No 10 (Manoj Gupta), who was CFO and signed and certified such manipulated financial statements of RSL, aided and abetted such diversion of funds from RSL to its promoters and their family members violated PFUTP regulations," Sebi's Chief General Manager G Ramar said in the final order on Tuesday. The probe revealed that Rana Sugars Ltd failed to disclose <keyword id="22946822" type="General" weightage="20" keywordseo="Laxmiji-Sugars-Mills-Company" source="keywords">Laxmiji Sugars Mills Company</keyword> as a related party in FY 2016-17. Further, the firm failed to disclose FTPL, CAPL, JABPL, RJPL and RGSPL as related parties. Inder Pratap, Ranjit, Veer Pratap Singh Rana, were persons in charge of and responsible for the affairs of Rana Sugars. Therefore, Rana Sugars, Inder Pratap, Ranjit Singh and Veer Pratap Singh Rana have violated the disclosure rules. Sebi also noted with respect to the movement of funds between RSL, and its related entities was not towards business advance for the purchase of sugar cane seeds and repayment of unsecured loan. Related parties are Flawless Traders Pvt Ltd (FTPL), Century Agros Pvt Ltd (CAPL), Jay Aar Builders Pvt Ltd (JABPL), RJ Texfab Pvt Ltd (RJPL) and RGS Traders (RGSPL). These funds were then transferred by RSL to related parties on the same day to promoters of Rana Sugars and their family members. The regulator found that related parties aided and abetted Rana Sugars, its promoters and directors to divert funds from RSL and violated PFUTP norms, the order said. Sebi also directed Rana Sugars to recover Rs 607 crore from related entities which includes Rs 339 crore in receivables and Rs 268 crore in interest dues. Thereafter, the regulator directed Rana Sugars to take all necessary steps for recovery of dues from these entities and advised them to appoint an independent law firm to take effective steps for recovery in consultation with the NSE. The markets watchdog also observed that RSL, Inder Pratap Singh Rana, Ranjit Singh, Veer Pratap Singh, Gurjeet Singh, Karan Pratap Singh and Rajbans Kaur have failed to provide any explanation for not appearing before the investigation authority (IA). Further, they also failed to furnish information/documents sought by the IA, which hampered the investigation process, thereby, violating Sebi norms. The order came after Sebi investigated the affairs of RSL to examine the diversion of funds from the company by the promoters and promoter-related entities of Rana Sugars, and consequent misstatements in the financial statements of the company. And whether the alleged diverted funds have been siphoned off by the promoters and promoter-related entities of the firm, resulting in violations of the provisions of PFUTP rules and LODR (Listing Obligations and Disclosure Requirements) norms. The investigation period was from financial year (FY) 2014-15 to FY 2020-21.

Sebi bans Rana Sugars' promoters from securities market for 2 years, imposes Rs 63 crore fine

New Delhi, To ensure more transparency and timely disclosure of material events by listed entities, Sebi on Wednesday decided to amend norms whereby a quantitative threshold will be introduced for determining the materiality of events. Besides, there will be a "stricter timeline for disclosure of material events/ information for which decision has been taken in the meeting of the board of directors (within 30 minutes) and which are emanating from within the listed entity (within 12 hours)," Sebi said in a release. Also, the regulator has decided to do away with the practice of individuals having permanent seats on boards of listed companies. These proposals were cleared by the board of Sebi during its meeting here on Wednesday. "<keyword id="3727797" type="General" weightage="20" keywordseo="market-rumours" source="Orion">Market rumours</keyword> to be verified and confirmed, denied or clarified, as the case may be, by top 100 listed entities by market capitalisation effective from October 1, 2023, and by top 250 listed entities with effect from April 1, 2024," the release said. To bolster corporate governance at listed entities, the regulator said that periodic shareholders' approval will be required for any special right granted to a shareholder of a listed entity to address the issue of the perpetuity of special rights. Periodic shareholders' nod will also be needed for any director serving on the board of a listed entity "to do away with the practice of permanent board seats". Among others, the timeline for submission of the first financial results by newly-listed entities will be streamlined in order to overcome the challenges in the immediate submission of financial results post-listing and to ensure that there is no omission in the submission of financial results. Sebi also said that listed entities will be required to fill up the vacancy of Directors, <keyword id="275825" type="General" weightage="80" keywordseo="compliance-officer" source="Orion">Compliance Officer</keyword>, Chief Executive Officer and Chief Financial Officer within a period of three months from the date of such vacancy to ensure that such critical positions are not kept vacant. In an effort to strengthen the investor grievance redressal mechanism in the securities market, Sebi has decided to operationalise the online dispute resolution mechanism for investors across registered intermediaries and regulated entities. The move comes against the backdrop of an increase in investor participation in the securities market and the emergence of technology aided dispute resolution frameworks. The Online Dispute Resolution (ODR) system would be extended to MII (Market Infrastructure Intermediaries) administered conciliation and arbitration mechanism to registered intermediaries, regulated entities and their investors and clients. Besides, the proceedings would be conducted in a hybrid mode, the dispute resolution process will be streamlined and other measures will be adopted to strengthen the enforcement of awards, the release said. Among others, the Issue of Capital and Disclosure Requirements (ICDR) regulations will be amended to increase transparency and streamline certain issue processes. If underwriting for the shortfall in demand or to cover subscription risk is opted by the issuer, the same has to be disclosed in the offer document prior to the opening of the issue. A listed entity can announce a bonus issue of shares, only after obtaining approval from the stock exchanges for listing and trading of all the pre-bonus securities issued by it. The bonus issue should be made only in dematerialised form, the release said.

Sebi to boost disclosure norms; do away with permanent board seats for individuals

<ul><li><keyword id="35210" type="General" weightage="20" keywordseo="sebi" source="Orion">SEBI</keyword> had announced a 100% upfront margin for trading in its new peak margin norms.</li><li>Basically, if you want to buy stocks worth ₹1 lakh of Reliance Industries, you must have about ₹16,000 in your account. This is because the value at risk margin for the stock is 16.11%.</li><li>Hashtag #notradingday was trending on Twitter on September 1 as SEBI new rules on margin disappointed investors.</li></ul>It seems to be a bad day for stock market traders as the market regulator’s new margin rule will come into effect from Wednesday, September 1. The anger was visible among investors on Twitter as tweets with hashtag #SEBIAgainstRetailers were trending. So what exactly are these new rules by the Securities and Exchange Board of India (SEBI) that have riled up investors? According to new margin norms, traders taking bets on futures &amp; options markets will have to keep 100% margin in their bank accounts to proceed with the trade. Until now, only 75% of the total margin was required. This 100% margin is based on the value at risk (VaR) margin defined by exchanges for each stock. VaR margin is different for each stock and is higher for penny stocks. Margin is a specific amount one needs to have for hedging stocks. For example: VaR margin is 16.11% for Reliance Industries and is 100% for Reliance Power (margin is higher here because it is considered a penny stock, which witnesses risky bets by traders). Now, a broker has to ensure this entire margin amount is provided by the client before trading or else a penalty will be charged. Earlier, only 75% of this margin amount was required. Traders showed their disappointment around the new margin norms on Twitter as #notradingday hashtag was trending on the microblogging website. <div type="image" title="SEBItrader" height="900" width="1200" msid="85826536" hostid="261"></div> <div type="image" title="sebitrader 2" height="900" width="1200" msid="85826544" hostid="261"></div> This new rule affects the stock traders, as now they will have to shell out more money to bet during intraday and futures markets. Further, penalties will be charged on traders if the margins are not maintained during the trading session. The idea by SEBI is to control the leverage being taken by the traders and thereby reducing risks. This is in regard to investors taking risky bets more than their margins. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/americas-20-year-war-on-terror-has-killed-up-to-929000-people-and-cost-over-8-trillion-report/articleshow/85824903.cms">America’s 20-year war on terror has killed up to 929,000 people and cost over $8 trillion: report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/why-bandhan-bank-indiamart-nalco-are-aptus-value-housing-stocks-are-in-demand/articleshow/85822692.cms">The market mood around these seven stocks has suddenly changed ⁠— here's why</a>

Angry tweets with #SEBIAgainstRetail spike as India’s market regulator’s new rules on intraday trading kick in today

<ul><li>India's market regulator's latest proposal includes a hotline and a reward for tip-offs on insider trading.</li><li>The proposed reward will be 10% of the trade value and capped at ₹1 crore ($145 million).</li><li>The Securities and Exchange Board of India has sought public comments on the proposal. </li></ul> If you know someone making a quick buck out of trading in shares based on insider information, and you are willing to report it to the regulator, there may be a reward for you. India's market regulator's latest proposal includes a hotline and a reward for tip-offs on insider trading. The proposed reward will be 10% of the trade value and capped at ₹1 crore ($145 million). The reward will kick in only if the guilty has to pay back an amount of at least ₹5 crore, a discussion paper released on June 10 said. The move aims to curb the rampant violation of norms in India where people who have access to unpublished price sensitive information about a company have been found trading in the same shares. Insiders usually indulge in insider trading through a proxy to whom the relevant information is communicated. Direct evidence of such communication is seldom available across various jurisdictions.Thus, detection and prosecution of insider trading remains a challenge, the SEBI paper said. The Securities and Exchange Board of India (SEBI) has sought public comments on the proposal. It would be compulsory for the informant to disclose the source of original information, and an independent office separate from the investigation and inspection wings or any of the dealing departments may be established by SEBI. The regulator has promised to protect to the informant and to make the information exempt from the Right To Information Act. At the same time, frivolous complaints may invite the regulator's wrath. The proposed policy is proposed to be brought into force by suitably amending the SEBI (Prohibition of Insider Trading) Regulations, 2015 with prospective effect. SEE ALSO: <a href="https://www.businessinsider.in/sebi-fines-nse-in-trading-case/articleshow/69125060.cms" data-type="tilCustomLink" target="_blank">India’s market regulator finally slapped a fine on the National Stock Exchange for giving preferential access to certain brokers</a>

You may earn up to ₹1 crore with a tip-off on insider trading sent to SEBI-- conditions apply

New Delhi, Clamping down on unauthorised investment advisory services offered in the name of '<keyword id="19268011" type="General" weightage="20" keywordseo="baap-of-chart" source="Orion">Baap of Chart</keyword>', regulator Sebi on Wednesday barred three entities from the securities market and ordered impounding illegal gains worth over Rs 17 crore. <keyword id="19264697" type="General" weightage="50" keywordseo="mohammad-nasiruddin-ansari" source="Orion">Mohammad Nasiruddin Ansari</keyword>, who described himself as an investment wizard, provided recommendations on stocks in the name of 'Baap of Chart' through the social media platform X and messaging app Telegram. The recommendations were given in the garb of providing educational training related to the securities market, according to Sebi. Besides Ansari, Padamati and <keyword id="19271004" type="General" weightage="80" keywordseo="golden-syndicate" source="Orion">Golden Syndicate</keyword> Ventures have been barred from the securities markets until further orders. Sebi directed them to cease and desist from acting as or holding themselves out to be investment advisors, whether using 'Baap of Chart' or otherwise. In its 45-page interim order cum show cause notice, Sebi found that Rs 17.21 crore has been accumulated during a period of just over two years from carrying out investment advisory activities, which are both unregistered and fraudulent. In view of receipt of fees for 'educational courses' directly in their bank accounts prima facie, the regulator concluded that Nasir, Padamati and Golden Syndicate Ventures are jointly and severally liable for alleged unlawful gains as an interim measure. "I cannot ignore the risk that the said Noticees (Nasir, Padamati and Golden Syndicate) may divert the alleged unlawful gains before directions for disgorgement/refund, etc, if any, are passed. "Further, I note that in his videos/ social media posts on 'courses' of Baap of Chart, Nasir repeatedly emphasises on providing access to live trading during his courses," Sebi's whole-time member <keyword id="183908" type="General" weightage="50" keywordseo="ananth-narayan" source="Orion">Ananth Narayan</keyword> G said in the order. Therefore, non-interference at this stage would result in irreparable injury to interests of the securities market and the investors, as per the order. "I am convinced that the balance of convenience lies in passing interim directions against them for preventing the continuation of any further fraudulent or unregistered activities in the interest of investors, and for impounding and retaining such quantified alleged illegal gains," Ananth Narayan G added. By indulging in such activities, the entities flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and Investment Adviser (IA) rules. Further, the regulator directed Nasir, Padamati, <keyword id="19271005" type="General" weightage="50" keywordseo="tabraiz-abdullah" source="Orion">Tabraiz Abdullah</keyword>, Asif Iqbal Wani, Golden Syndicate Ventures, Mansha Abdullah and Jadav Vamshi to jointly and severally disgorge the Rs 17.21 crore collected from clients/ investors through unregistered investment advisory activities. The markets watchdog also directed them to refrain from accessing as well as associating themselves with the securities markets for an appropriate period. The order came after Sebi analysed certain tweets on social media platforms X and Telegram, where Nasir was prima facie observed to be providing recommendations (buy/sell) through social media in the name of 'Baap of Chart' in the garb of providing educational training related to the securities market. Thereafter, the regulator initiated the examination against Nasir in order to ascertain whether he was engaged in offering investment advisory services without having Sebi's registration through social media/other means and thereby, flouting the regulatory norms. The examination period in the matter is from January 2021 to July 2023.

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