[00:02] channels are misunderstanding SEBI's rules. They are saying that SEBI is bringing new rules for entire FNO futures and options, index derivatives like Nifty, Bank Nifty, Sensex, QIN Nifty. They are
[00:15] bringing new rules related to these. And the rules that are being brought are also impacting option sellers in a way. They are impacting option buyers in a way. They are impacting entire option very interesting rules.
[00:31] today's video, I will answer any doubts you may have clearly and quickly. I will end this video. Before starting the video, please enter FNO. The
[00:44] rules are not just  These rules apply only to futures and options related to the index Nifty Bank Nifty Sensex Fin Nifty Midcap complex 18-page document with examples. If you
[00:59] with examples. If you our video. So, first of all, is this clear to you? This is not for futures and options related to stocks, but
[01:14] this clear? Rationalization of Weekly Index Products From here, it is said that expirations. What kind of expirations have we got so far? There were four expirations in Nifty. There was one expiration per week. There was
[01:29] expirations, Fin Nifty has one four expirations, Mid Cap or Even individually have four four expirations. If we add up all of them and think that there are 20 trading days in a month, then we have expiration trading in those 20 trading days too. It is not like that from here, they are saying to take
[01:44] only one index per exchange, that is, one expiry year should come from NSC weekly, one expiry year should come from BSC weekly. If we put one expiry weekly, what will they put? Nifty expiry. What will they put? BSC will
[01:57] put Sensex. So, going forward, time with time, option traders, whether for buyers or sellers, weekly Nifty. If they select Nifty, if they be there and the expiry related to Sensex will
[02:13] not have weekly expirations but there can be monthly expirations. So, there is a expirations. So, there is a
[02:30] expirations related to Nifty, four expirations related to Sensex, one Bank Nifty, one Fin Nifty, one Mid Cap, one Bank X, etc. There are chances that there will be monthly expirations related to those indices. And
[02:43] how will this impact traders? Activity will decrease, volumes will we should see this as a good thing. Don't take this as a negative. Due to these regular expirations, volatility and predictability in the market will decrease and when it falls,
[02:56] then those strong moves, suddenly going up, suddenly going down, the probability expires decreases, then the market has stabilized somewhat, whether it is directional or range-bound,
[03:11] no need to take this as a bad thing. They say that from where the market is present, up to 4%, they will leave it as it is now. They say that the strike intervals will be reduced as it exceeds 4%. I will explain this to you in a simple way so that you can understand it. For the
[03:24] better understanding, let's take 25000, the round off number from there is 4%, which means how much 20 25000 is 4%, 1000 is 1000, 1000 is up, 1000 is down, which means we are near 25000. For example, if we think we are near 24000, 25000 is a  1000 down and
[03:39] 25000 up by 1000 i.e. up to 26000 near 25000 down 1000 up 1000 in between i.e. 26000 near 25000 down 1000 up 1000 in between i.e. from 26000 to 24000 in Nifty, Bank Nifty in all other cases
[03:53] they leave it as it is, we have no issue in that but as it goes up 20 as it goes up 6000 as it goes down 24000 as it goes down 50 50 strike price here we have a difference of 100 150 200 difference in
[04:07] strike price we should understand what is said in CB circular 51 rationalization of option strike price as meaning and
[04:20] reduce it, if you increase the distance between the strike price after a limit, which is 4% after the limit, then up and down after 4%, the number of strikes will decrease.
[04:35] SEBI is of the opinion that option trading activity will decrease. Due to this, will there Two important updates are visible for those who are doing expiration trading. Removal of calendar spread benefit on expiration day. This is the biggest impact.
[04:48] expiration day. This is the biggest impact. expiration day. Let's say now it is near 24700, right? is near 24700, right?
[05:02] August. I am giving you an example. Suppose today is today's expiration. You wanted to sell today. You asked for 64000. Suppose asked for 64000. Suppose
[05:17] Suppose you put it to buy. What is being asked of you? 19700. 60000. Where is 19000? Where is this? How much will it expire today? If our market is there, this is zero. If the market is even, I am a little out of the money. This is what
[05:30] I am selling. If the market has increased a little next week, the option that is at the money will increase. This week's option will go to zero. So, Suppose this expiration.
[05:42] Sell today's at-the-money option and buy next week's at-the-money option and make This calendar benefit is for those who want to earn more money in this expiration. They say that this benefit should be removed.
[06:02] spread benefit is negative. And the same is true for those who are trading this expiry. thing that they say is that the margin is further increased. Let's say if
[06:14] you will have to spend ₹108000 next day. The day before expiry, the day before expiry will increase by 3%. The day before expiry, the margin will increase by another 5%, making a total of 8% on the expiry day. If you compare it with normal days, you will have to put more. These are the
[06:28] disadvantages of those who are trading in expiry. There is also a rule here for option buyers, but this is not for option buyers.  It really doesn't impact the upfront collection of option premium from option buyers. If you
[06:41] are trading till now, let's say you are buying a 50 with a premium. Let's say the lot size is 50. Let's say the premium is 50. Lot size is 50. 50 * 50. How much is 2500? This is what you are giving to the broker. What some brokers do till now is that they
[06:55] take this 2500 and then you trade for ₹1000 and buy the option that is 2500. Even if buy the option that is 2500. Even if you have less money, it doesn't matter.
[07:08] you take the entire money. As any broker or SEBI tells their brokers, most of the brokers you are trading with do the same. To buy an option, you have to have 100% of the money. giving the same in the present and future as well. It will not have a big impact. This will not have a
[07:23] big impact on option buyers. The current in phase one and then it will be changed to 20 to 30 locks for six months. Let me tell you this by
[07:35] taking Nifty as an example. Suppose Multiply by lot size. How much is Nifty multiplied by 25? How much did you get? ₹617500. We cannot change Nifty. What should we do to make these 6 locks 20 locks 30
[07:51] locks? How much should we increase the lot size? If we multiply by 6 locks, it will go up to 30 locks. If we How much should we increase the lot size? If we multiply by 6 locks, it will go up to 30 locks. If we go a little above 30 locks. So it is a little reasonable to go with four.  Let's
[08:06] multiply it by four, it will be 2470000. So if the present contract value is 6 locks, to go up to 24 locks, the lot size should
[08:24] lot size of 25, if multiplied by four, becomes 100. If multiplied by five, it becomes 125. In simple terms, today, those who are selling one lot those who are selling one lot
[08:38] cannot. Those who have sold three lots can do it initially. Note here after six months. First, they say that they will take 15 to 20 locks, and after six months, they will take 20 to 30 locks again. So, they cannot do it by then. Only those who are able to do minimum four lots
[08:51] in Nifty and three lots in Bank Nifty. Only those who can present that capital, only option sellers, can do one lot in the future. If you do three you get as if you did one lot because the lot size has
[09:07] do two lots, small retailers, will have to exit option selling. small retailers, will have to exit option selling. hedging benefit expiry day. So, as retailers, let's enter option
[09:21] selling with less capital and without margin benefit. Those who want to do option selling without margin benefit will definitely face difficulties in the future. This is Nifty related,
[09:35] will be multiplied by a minimum of four. Where is Bank Nifty now? It size  If you multiply by 15, you get 770000. If you multiply by
[09:47] three, you get 23 lots. If you lots. So, minimum three lots. If you are selling Bank Nifty today, you can do lots. If you are selling Bank Nifty today, you can do
[10:02] half a lot. So, only those who are doing four lots in Nifty now, those who are doing three lots in Bank Nifty, and those who are doing the minimum will survive in option selling in the future. If we
[10:18] example of giving at-the-money. Now, I will show you 24700 24700  If you want to buy the weekly, click on the weekly, it buy the weekly, click on the weekly, it will be ₹3500.
[10:30] If it is multiplied by 4 in Nifty, if it is multiplied by a factor of three, if it is multiplied by a factor of three, 3500 * 4, how much is it? It is close to ₹14000. If you multiply it by four, then a person who is doing it with ₹3500 today
[10:43] can trade it only if it is with ₹14000 tomorrow. That means that for those who have ₹15000 as capital for buying options, there is no means that for those who have ₹15000 as capital for buying options, there is no Even in Bank Nifty, this is the same. I told you previously that if you have ₹15000 as
[10:56] capital, the rules that are being brought now will not impact option buyers but will impact option sellers because now if you have sell one Bank Nifty as a demand, it will cost one lakh rupees, that means that the future will be  In terms of Bank Nifty, a
[11:09] minimum of one to four lakhs should be related, but in terms of Bank Nifty, only if there is a can sell options. Ultimately, in all these rules, option sellers are small option sellers, index futures are small option sellers, options are selling, futures are buying and selling, option selling is the biggest rule in terms of
[11:26] and intraday monitoring of position limit. Usually, a broker has a set percentage that now it is calculated on a day-to-day basis. It has no
[11:43] not need to worry about it. These are the overall rules.  But I hope I have explained it to you in a better and simplified way. The ST has been increased. In the recent budget, the STT has increased by 68% in futures and by close to 60% in options. If you think that the STT has been increased, then
[11:57] That is wrong. No one will reduce trading by increasing the STT. Those who are But this loss will additionally go to the government in the form of tax. Even if there is a profit, the STT on the loss will have to be paid. Even if there is a profit, the to the government in the form of tax. Even if there is a profit, the STT on the loss will have to be paid. Even if there is a profit, the
[12:12] Those who make a profit will have their profit reduced a little. But this ultimate thing will new rules that are coming related to SEBI are the new rules in the consultation paper. These are the new rules that will be discussed related to this.
[12:25] change it.  I don't think so. In fact, in the recent meeting, SEBI related whole- on the screen for you. He also
[12:37] not the end of the story. They are also saying that they will bring any other changes. Mostly, with these changes, I think the activity of retailers in
[12:49] FNO will decrease. Particularly, cause much trouble to them and gives comfort, SEBI will probably make these not yet the same. If retailers are still active, then maybe they will
[13:04] try to tighten the rules that they are still in.  I will do it and personally I have been saying my opinion for a long time. If you want to control FNO mostly small contracts in FNO. If
[13:20] we want to control those who want to do it like a lottery, if we want to do it properly, Exchanges or brokers, because they get crores of profit through traders. Therefore, I want FNO.
[13:32] Every person who enters, I teach all the concepts intensively for six months and what strategies to go into when that volatility is there. I
[13:48] After proving himself, he can  If we try to provide activity, only not. The probability of losing will decrease. So logically, if
[14:03] probability of losing will decrease. So logically, if education solution, not for this or that. If we do that, the activity will be you only
[14:18] observe traders if you have proper knowledge. They do not take whatever falls. They only decrease. They think that they should enter only if there is an opportunity. So, and stop loss risk reward is understood.
[14:36] Exchanges and brokers should try to educate. If all these rules are brought, let them be brought. Along with this, proper education in all regional languages, not only English and Hindi, is considered major
[14:49] in India but in all regional languages. It is a protection for those who are entering FNO. In my opinion, share your opinions in terms of the what changes should be made to make it even better.
[15:07] Until then, take care, Jai Hind.