Comment on Intraday leverages reduced across the board

Bh commented on 06 Jan 2020, 03:17 PM

Entire world, all businesses entertainment, manufacturing, service run on leverage.
Banks lend and make money, it is a kind of leverage.
Businesses borrow money, invest it and earn profit, it is a kind of leverage.
Why is sebi targeting traders in stock market?
Instead of encouraging retail participation, SEBI is killing it.
And if i am correct, the present rule of cutting levergae in cash market is applicable only for retailers and not for FII’s.
Does it mean Nse and Bse is only for FII’s and not for small investors?

As far as abolition of leverage in fno, already there in widespread unemployment in our country.
With this rule, small brokerages who employ thousands will loose business and close.

The option of providing leverage to a trader should be left to
broker, it is a deal between broker and trader.
Why apply blanket rule?
By cutting leverage, authorities are forcing us to operate in lakhs per lot vs thousands per lot.
Will this not encourage more fraud?
With thousands of crores in broker’s account, SEBI is indirectly encouraging brokers go the wrong path and introduce defect in the system.

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