SEBI (Securities And Exchange Board of India) is planning to release new rules under the criteria of being eligible to trade in the stock market.
In the light of the fact that 9 out of every 10 individual retail traders make net losses in the derivatives market, SEBI is concerned and want to limit trading opportunities based on the income of the individual so that their losses can be limited.
SEBI New Rule
The rule is not officially out yet but it will imply some conditions on trading capital of the individual based on how much income and net worth they have.
For Example, if an individual retail trader have monthly income of 1 Lakh, he/she will be allowed to trade only with the 10k or 20k maybe.
However, this is not officially confirmed yet, but we want to make sure that you are being prepared already if any rule of this type comes into practice legally.
