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This is with reference to SEBI's latest circular dated 20th July 2020 whereby banning intraday leverage in phased manner, this e-mail will guide you regarding the grievances faced by me and several other retail traders. The above circular will have great impact upon the regular markets as it will diminish all the liquidity, volumes and may also impact the financial opportunities of many retails traders.

This circular has jeopardized our trading future as in my personal knowledge there are several traders who are availing the leverage and margin allocations since decades. As a result of this circular the future of intraday trading is at stake and it will have a much greater impact on the financial capabilities of the Country. It is a general rule that a person who is above eighteen years and fully capable of his actions is allowed to open a trading and Demat account. Furthermore several traders have also cleared NISM certifications which makes them aware of the risk of intraday trading, rather than banning intraday leverages, I would like to suggest that it should be left to the broker discretion with minimum controls. Penalty cannot be the way of doing business in a country like India where there is so much less participation in capital markets . A client today selling shares for delivery also has to ensure margins to be paid first is ridiculous in todays online world. Buoyancy and liquidity of the markets will be severely impacted with such harsh measures.  

With the country suffering from pandemic and fate of making a livelihood is at stake many of us have recently gathered hope from intraday trading and by this circular it will make difficult for a retail trader to explore any such opportunity. During this pandemic it can observed that many individuals including housewives are turning towards intraday trading for their livelihoods. Moreover, once this circular is fully operational it will have a huge impact on countrys' financial position. It is further stated that by way of this circular only elite and institutional traders will have a upper hand and the possibility of manipulating the markets cannot be ruled out, which doesn't promote fair trading.

If at all a comparison has to be made with other Countries, the margins that Exchange charges are way too high than other exchanges globally. At most the leverage which a trader utilizes is provided by his brokers own funds and that such funds are utilized on intraday basis only. The brokers have deployed their RMS teams for monitoring the funds which are provided as leverages after due diligence.

I, hereby request you to withdraw the circular dated 20th July 2020 as it concerns the whole trading fraternity and that SEBI being the only regulatory authority must make decisions in favour of the investors and to promote fair trading practices.