Not more than 50 strikes would be introduced for an index derivatives contract at the time of contract launch.
Spillover of trading activity from these contracts into remaining products, analysts believe, can limit the impact to 20-25%
Buyback and tax-free dividend had a gap and an equalisation was needed. Volumes in F&O trading had gone up rapidly and, in a way, the increase in STT on F&O will protect investor interest, he said
If you have both F&O gains and losses in a financial year, declaring the losses allows you to offset them against the gains, reducing the overall tax liability on F&O transactions
A study by market regulator Sebi showed that 7 out of 10 individual intra-day traders in the equity cash segment made losses in the financial year 2022-23. At the same time, the study highlighted a sharp surge of over 300 per cent in the number of individuals participating in intraday trading in the equity cash segment in 2022-23 compared to 2018-19. Interestingly, the average number of trades by loss-makers was higher than the profit-makers. Further, the share of young intra-day traders, with less than 30 years of age, has risen significantly over the period, according to the study released by Sebi on Wednesday. The markets regulator has conducted a study to analyse the trends in participation and profits and losses in intraday trading by individuals in the equity cash segment. It covered the periods of FY2018-19, FY2021-22 and FY2022-23 to comparatively analyse the trends before and after the pandemic. The study, based on a sample of individual clients of the top-10 stock brokers
Some market participants have also suggested that income from F&O trading should be classified as speculative income and taxed at a higher rate
Union Budget 2024-25 news: FM Nirmala Sitharaman hiked hiked LTCG tax to 12.5 per cent from 10 per cent on all financial and non-financial assets
The Indian stock market, the survey said, was among the best-performing markets, with India's Nifty 50 index rising 26.8 per cent during fiscal FY24, as against a drop of 8.2 per cent during FY23
To soon float a consultation paper on curbing derivatives euphoria
Union Budget 2024: The Securities Transaction Tax (STT) applies to every sale and purchase of equities listed on exchanges. The STT rate for selling options is 0.017%, while for futures, it is 0.01%
Market pundits also expect some changes in the tax treatment of gains arising from trades in the futures & options (F&O) segment
No change seen in Nifty, Sensex components
Sebi is also concerned about the absence of a link between the cash market and the derivatives market. But the majority of options traders have never traded options to take or give delivery
Market regulator Sebi tweaked the selection criteria for stocks to join and exit the derivatives (F&O) segment on Thursday, June 27
Sebi chairperson Madhabi Puri Buch said as India's market matures, it is imperative to allow companies to go private if they wish to do so
The move could lead to the addition and deletion of about two dozen stocks
The working group has representatives from the market ecosystem, such as the exchanges, brokers, and academicians
BHEL, Bharat Electronics, Adani Ports and Special Economic Zone, REC, Power Finance Corporation (PFC) from the future & option (F&O) segment stocks tanked 25 per cent
With growing participation of retail traders in the futures & options (F&O) trading, experts on Sunday said the prospects of quick profits and speculative nature of the instrument has attracted investors to this segment. They suggested investors to approach F&O trading with thorough knowledge and careful risk management. Finance minister Nirmala Sitharaman and chief economic advisor V Anantha Nageswaran have recently flagged the growing risk of F&O trading for retail investors. In November 2023, Sebi chief Madhabi Puri Buch also cautioned investors against heavy bets on F&O. The caution was likely aimed at encouraging a more informed and prudent approach to trading in these products, helping to safeguard investors' financial well-being while allowing them to take advantage of market opportunities. Despite this, F&O trading continues to grow in popularity, driven by the potential for profit and the rising trading volumes. The segment's popularity is evident from
Within this basket of Modi stocks, the preferred BUYs for CLSA India analysts are ONGC, NTPC, NHPC, SBI, Power Finance, IGL and Mahanagar Gas in the PSU space