Hello!
Last day, I was trading on INDIGO SEP FUT and what I saw was absolutely nuts both in terms of risk management and position sizing.
1 lot of INDIGO FUT is about ₹14.75 lakhs worth of exposure with a margin of just ₹2.8 lakhs. That is absolutely effing insane. SEBI and NSE are working in gloves with each other to skew the data, in order to show that retail is making losses which actually is manipulated data IMO.
If they actually want to make the markets fair and ensuring a level playing field. Then it should be ₹2 lakhs for ₹5 lakhs exposure in any FUT contract. Or even better, reduce per lot size to ₹50k for any exposure of ₹1.25 lakhs so that position sizing and risk management is actually in sync.
Even though I did make a huge profit on the contract, the way it was swinging anybody could easily see a ₹10000 +/- in just a minute. Exposures are purposely being made to increase and margins are purposely made to decrease. They would then torture the data to derive conclusions that favour their mindset.
What is going on now is orchestrated and I think is PURPOSELY done to benefit the big players.
The flip side is, DABBA trading is on the rise again with this app getting more than 10 lakh downloads IN A SINGLE WEEK.
We need more informed and people friendly regulators.
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SEBI and NSE are working in gloves with each other to skew the data, in order to show that retail is making losses which actually is manipulated data IMO.
Every data is (or could be) manipulated if one wants to get the results they wanted to see as well as do there studies with already a biased opinion/hypothesis as a mainstream point of study.
Not just this but results of entire study could be projected to a large group of sample without context (if study sample size itself is small or convereged then there is more chance of error and biased outcomes). So any studies from S&P / SEBI / NSE & BSE and there outcomes should always be taken with a pinch of salt.
Even though I did make a huge profit on the contract, the way it was swinging anybody could easily see a ₹10000 +/- in just a minute. Exposures are purposely being made to increase and margins are purposely made to decrease. They would then torture the data to derive conclusions that favour their mindset.
Agreed. Curve fitting to make sure data match the conclusions and not vice versa.
What is going on now is orchestrated and I think is PURPOSELY done to benefit the big players.
This is what SEBIs sole purpose is for. Honestly reading more about SEBI it feels they were meant to help only a certain large players and not really a large set of small players aka retail investors/traders in most cases.
It’s same with most regulatory bodies. They’re stuck with 40-50 year old mindset while the world has moved far from those dark ages. In the name of protecting weaker population (be it in markets or social situation or other sects) what these regulatory bodies are making is more and more control over each and every stuff than liberalising them such that they’re accessible to everyone.
Just for example S&P500 has mini contracts which would amount to 5000 USD which everyone could use to hedge while there is also 50000 USD contract (which mostly main players like AMCs, hedge funds uses). There is huge volumes for mini contracts. If it was SEBI then they would’ve made sure mini contract won’t exist because there own study would say some bs like there is huge volume explosion in market and there is huge speculation build up (as if equity isn’t a speculation 
when someone buys a stock at a P/E of 120 but sales and profit growth of just 12% YoY) so ban it or make sure it won’t be accessible to any small players. Such is the attitude of SEBI.
I don’t think this conservative attitude from SEBI about investors would change anytime sooner either and i don’t expect they would become friendly either.
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@ValueInvestor0 Your words are impressively versed articulation of my thoughts. 
Next up, SEBI says they are going to increase lot size so basically that would be ₹7 lakhs margin for a ₹60 lakhs exposure lot.
A swing of mere 1-2% would technically take out 20-30% of the account, instead what they should do it decrease lot sizes like Nifty contracts so that one can judge their exposure and appetite accordingly.
Next up, SEBI says they are going to increase lot size so basically that would be ₹7 lakhs margin for a ₹60 lakhs exposure lot.
This is what is being proposed right? First increase lot sizes to match 15-20 lakh and later to 25-30 lakh. Eventually they will settle for 50 lakh exposure i guess. Increase exposure and decrease margins and no small players would be able to touch it. As you said even 1-2% loss on a volatile day would be like margin call situation which would eventually make small players leave the entire segment for someone else.
I don’t think SEBI will even make any further plans to improve various market segments like F&O, commodity through a structured product like MFs for equity and debt even after seeing consultation paper that was published few months ago.
GoI and SEBI has a joint scheme to kill every other market segment going forward is what i’m feeling. Not to bash them but investing in any small savings scheme or govt sponsored savings scheme is now useless or almost useless as it’s no more attractive from tax or return pov, debt markets are also useless due to low returns and high tax situation, real estate markets are not for investors who don’t have at least a sizeable amount of money and prices are manipulated to the core here, commodity markets not much liquidity afaik and currency market dead, equity markets are overpriced and eventually will be taxed higher such that everyone will sit on unrealized gains and one fine day bubble pops there, can’t do geographical diversification of any asset class because our central banks hate it. Essentialy regulators and government both would join hands to kill every money making stream.
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Won’t be able to create jobs. Won’t need Saturdays and Sundays as holidays, it is a western concept. Won’t let you trade. Won’t let you invest. Real estate mafia. Tax terrorism.
Na khaunga, na khane dunga. 
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