As per the recent article, Sebi has requested data from brokers regarding the P&L of retailers in commodity segment.
Link to article : After an equity derivatives clampdown, are commodities next for Sebi?
I don’t think Sebi is going to rest until the complete F&O segment is shutdown.
More likely, govt wants to explore more areas to increase taxes, doesnt matter if that also increases losses of losing traders.
Is there anything left that government hasn’t taxed?
They alread collect STT on Intraday, Delivery and F&O (I believe this includes commodities as well)
I think they might try to bring in rules like having underlying exposure before taking a trade ( like what they did with currency derivatives ), which will kill this segment as well
We can always increase it a bit after threatening and people will be happy to pay
I am just guessing, obviously. But increasing taxes on markets has been a pretty consistent approach by this govt.
Yeah, that makes sense. Thank you for your insights.
To be fair, that was always the rule. All trades done on currency derivatives without underlying exposure, even before the notification was illegal - always has been.