Stock option nse india


Today we have a very special treat — Nitin Rao is a blogger stock option nse india the Indian markets, but he blogs stock option nse india English at stock option nse india brand new site Alpha Ideas. This is great stuff.

Indians are hugely equity averse. This amounts to a laughable figure of 2. In a country of 1. In the last 19 years, the ratio ranged from a low of BSE is the oldest stock exchange in Asia and claims to have the largest number of listed companies in the world. However, of the scrips stocks listed, only about a third around are traded every day. Foreign Investors Now Welcome: Earlier foreign citizens were prohibited from trading directly in the Indian stock markets but since Janthese restrictions are withdrawn and now they are permitted to invest freely.

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Why is Zerodha not allowing us to do intraday trading in scrips which are in ban period? For ban scrips one cannot have new overnight positions but we can still buy and sell positions in intraday right? So many other different brokerages provide this facility. Yes, exchanges look at if overall position is added at end of day at broker level. But if you look at exchanges circular on ban period stocks, they are very clear that nothing new should be allowed even for intraday.

If there are other brokers doing it, they are not being compliant to exchange regulations. The positions, for this purpose, will be valued at the underlying close price. This stock option nse india says position size should be same at EOD.

As Suresh mentioned many well established brokers are providing that facility of doing intraday trade in ban scrips. Kris, will speak to our compliance team on this. This is a very common occurrence in case of stock options. Nitin, Every broker has facility to close positions taken in intraday. Stock option nse india the same step should be used in the scenario mentioned above. Its very clear that EOD position should be same stock option nse india one has to close all positions intraday only There are so many such probabilities in market but solutions are also already in place so we just have to look into it.

What if either buyers or sellers are not available for a stock option once the position is entered, which is a common scenario. Most stock options are illiquid. If you take it for intraday and we are not able to square off, it is an issue. So you need to figure out method in enabling this option which is in-line with the regulations. If still someone fails to close they will be penalised which is something common in market.

Its the users risk. They pay penalty as STT right? Many still pay so it varies from user to user. If one client with rs in his account bought far out of stock option nse india money option and by EOD we have to sell this, what if buyers were not available, it will be open and increase the market wide position limit.

If the option has expired worthless then the total penalty has to be recovered from client so again stock option nse india to credit risk. I just mentioned for 1 lot from one stock option nse india, what if 10 clients buy 10 lots in each stock option nse india scrip, the risk will be ballooned exponentially for broker.

Few traditional broker might diversify it with charging very high brokerage, even then I personally believe odds are never in favor of broker in this scenario. Siva, Market there is huge risk for everyone involved and one needs to manage it.

That way people with full capital only will be able to take position. Even for option buying demand full margin of futures to open new position. Also you could enable facility of trading only in futures in ban scrips rather stock option nse india in options. These are just suggestions. You only allow existing positions to square off.

Where as in many brokerages they allow squaring off the existing positions but at the stock option nse india time allow them to rollover the positions into next series. The only condition is EOD position should be same. The rule pasted by you above is an extract from NSE website which is standard. If the risk is there for Zerodha then there is risk for other brokerages also. If they are able to manage it, I am sure you guys are more than able to manage it.

We are not asking for something against the rule. Kris, I am just giving my individual opinion here but not of Zerodha. Even with Zerodha if one is having stock option nse india on any ban scrip they can close existing and roll it over for next expiry. To conclude this is just my discrete take on this. Siva, My point is when other brokerages are providing this facility then their users are getting undue advantage. Which is far more than doing the same in CM.

Again my point is when NSE is not restricting stock option nse india activity why is Zerodha restricting? If this was against rules then NSE would have already taken actions. I rest my request here and see what Zerodha can do. Siva, And wrt your suggestion of doing intraday in cash market you must know its very difficult to get your order filled. Thanks Kris for making a point in the forum, Can you let me know which broker provides the facility of trading intra day in Ban Scrips? Motilal, Ashika, Micrsec, Naronila and my friends use some other brokers and they provide this facility too.

Is it allowed now? It is not allowed, said that stock option nse india could have resulted in huge loss if one has bought it, so this is subjective and intraday trading is allowed on all other counters which are not under Ban and they also provide good trading opportunities if carefully monitored. Why doesn't Zerodha allow intraday positions for contracts in ban period? Hi Nitin, Please see the details below: Hi Nitin, Is it allowed now?