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Friday, August 27, 2021

US, aided by Pakistan, DESTROYED Afghanistan By SHEKHAR GUPTA :-rediff.com used here for educational purposes only as this blog is not commercial

 The US has the distinction of destroying a flawed but functioning State thrice since 1979.

Pakistan has been their constant accomplice, explains Shekhar Gupta.

IMAGE: A US Marine carries an Afghan child at the Hamid Karzai international airport, August 20, 2021. Photograph: 1st Lieutenant Mark Andries/US Marine Corps via Reuters

With a speedy Taliban conquest, Afghanistan is dominating global news headlines and commentary.

Please note how almost 90 per cent of all the commentary and debate is about what it means to other countries, from the US to India to China and, of course, Pakistan.

Very little time and emotion is being invested in the country to which it matters most of all.

Afghanistan and its nearly four crore (40 million) people.

Amazing, no? Actually, it isn't. It was as inevitable as the Taliban victory once the Americans bought their special envoy Zalmay Khalilzad's idea of a minimum plausible deal.

Minimum in that the Americans should be able to return without getting their backsides peppered by Taliban bullets.

Afghans be damned. Now, of course, even that is looking dicey as the Americans are begging the Taliban to at least spare their embassy.

Khalilzad is an Afghan born in the northern city of Mazar-e-Sharif, and a Pashtun from the Noorzai clan.

He has not allowed his knowledge of his parent country's history, ethnicity, and the fate of his people to be 'coloure'" by his first class American education. He knows what his fellow Afghans are fated to deserve. Exactly what he might have left his homeland for America.

Eternal conflict, anarchy, Islamism of one shade or the other and another war in the course of time.

So, get the hell out of here. Just as he had done as a US-bound teenager through an inter-cultural school students' exchange scheme. Smart people do not belong here.

Good education can give you intellect, not sensitivity.

It's something either God gave you, or didn't.

The fact is, Afghanistan actually has a lot many smart people left.

Look, for brilliance of its brilliant cricket team.

IMAGE: US Marines prepare to receive evacuees at the Hamid Karzai airport in Kabul. Photograph: Sergeant Victor Mancilla/US Marine Corps via Reuters

But if you know its history, or have also lived through a part of it as Khalilzad did, you could easily get heartless.

Through its history, or at least for the about two centuries since the big powers discovered it and what its location means to their own geo-strategic interests, Afghanistan and its people have got the same awful deal.

For Imperial Britain, it was the buffer State they needed between themselves and the powerful Russian Empire.

Their military efforts to control it suffered infamous early setbacks, but they persisted.

Finally, after the two Anglo-Afghan wars in the 19th century that left lots of Afghans dead and ruined, they signed one of those treaties only a colonial power offers a defeated one.

A notion of retained sovereignty in return for control over its foreign and strategic polices. A perfect buffer state.

Mortimer Durand made the Afghan ruler sign off on a border he drew with colonial India, the so-called Durand Line.

On paper, the Afghan ruler was sovereign, in reality, after the second Anglo-Afghan War, the British controlled its military and foreign policies.

It was like Durand was negotiating with himself on the other side of the table.

No surprise that no credible Afghan ruler or regime ever recognised this border.

After 1947, it has kept Pakistan deeply invested in Afghanistan's affairs for 75 years now.

For nearly four decades, Afghanistan became the Soviet Union's buffer State to its south-east, especially for its vulnerable Central Asian underbelly.

If you have a one-dimensional view of your strategic interests, as the Pakistan compulsively does, it was a historic opportunity.

If Afghanistan was the Soviet buffer State, Pakistan was a natural American ally.

The only dimension that matters for the Pakistani strategic mind is leverage against India.

They monetised that lottery of becoming a frontline State against Communist expansion only to strengthen their economy and military vis-a-vis India. They failed to translate it into any gains.

On the other hand, they fought two self-destructive wars with India, and lost half their country in 1971.

Pakistan's catastrophe was self-inflicted between 1954 and 1971, but respite for Afghanistan was brief, if any.

Soon enough, Pakistan and its agencies, along with Western allies were playing power games in Kabul to topple the pro-Soviet regimes and replace them with friendlier, Islamist ones.

This brought the Soviet invasion of 1979.

Led by the US, the entire Western bloc, the Islamic world and China joined in to arm, finance and build the Mujahideen.

Millions of Afghans died and nearly 10 million became refugees in the fighting that ensued.

Pakistan, India on its mind, was again a frontline State and the goodies pipeline had reopened.

The Soviets left in 1989, and because Pakistan believed it had defeated a superpower, it wasn't going to let the Soviet- and India-friendly Najibullah regime survive. They kept helping the Mujahideen to defeat it.

Eventually they were in control of Kabul. But they weren't done yet.

The Mujahideen were divided, too many leaders had minds of their own, and Pakistan wanted a more cohesive vassal in Kabul.

IMAGE: Taliban fighters march in Qalat, Zabul province, Afghanistan. Photograph: Screen grab Social Media video via Reuters

That's why the string of madrassas was set up that taught the Taliban (young Afghan students) the most fundamentalist version of Islam, and trained them only for one thing, to fight wars.

Again, lots of Afghans died as the Taliban now pushed out the Mujahideen and imposed their own version of a shariah regime.

Lots of talented young Afghans, just like Khalilzad might have done in the 1960s, left.

The country lost talent, capital and culture.

It got, in exchange, al-Qaeda and other proliferations of religious extremism.

Which, eventually, brought the Americans again after 9/11.

Between 1979 and 2021, the Americans have now broken Afghanistan, a functioning State whatever its flaws, three times and left millions dead in their wake.

They defeated the Soviets but dumped Afghanistan once that purpose was served.

They returned in 2001 with the grandiosely named Operation Enduring Freedom, with the promise of destroying the Taliban and building a modern, new, democratic Afghanistan.

In 2021, they dump Afghanistan, destroying a functional State yet again.

Why, because they now decided that all they needed was a safe and dignified retreat that didn't look like a defeat.

The first objective, safety, might be achieved. The second has been lost.

The US, therefore, has the distinction of destroying a flawed but functioning State thrice since 1979. Pakistan has been their constant accomplice.

A lot of Afghans will die again.

Yet another generation of educated elites will flee, and women will be back where the Taliban want them to be.

Safe, probably, but condemned to lives their view of Shariah entitles them to.

The reason we have a new, educated Afghan elite is that this time the Americans didn't just fight a war.

They also invested time, money and emotion in nation-building.

Never mind that President Joe Biden now dismissively says that was never the idea.

In the 20 years of what we might call American occupation, the Afghan population made great strides.

I spotted the data in a tweet by Washington-based strategic scholar Dhruva Jaishankar quoting World Bank data on the change in Afghanistan between 2000 and 2018.

Most important indicator first: Life expectancy.

It went up from 56 to 65 years. Gross primary school enrolment from 21 per cent to a 104.

Female adult literacy climbed from 17 to 30, access to electricity from 22 to 99 and per capita GDP nearly doubled, from $1,190 to $2,034.

IMAGE: A US Marine calms a toddler at the Hamid Karzai airport, August 22, 2021. Photograph: Staff Sergeant Victor Mancilla/US Marine Corps via Reuters

This is what the Americans helped create, but only because the Afghans had the ability, hunger and ambition for modernity and change.

Now, on the 20th anniversary of 9/11, they return Afghanistan to the brutal regime they had dislodged in 2001.

It now faces one of three possibilities.

The least worst, the Taliban establish their Islamic emirate, governed by their rules.

The less worse, that as happened in the earlier Taliban era, at least some parts of the country stay out of Taliban control.

And the worst, that fighting continues, with Pakistan, China, Russia and Iran messing about as Afghan factions kill each other.

In other words, a Syria on the top of South Asia.

Any which way, the hapless Afghans won't have much say.By Special Arrangement with The Print

Feature Presentation: Aslam Hunani/Rediff.com

SHEKHAR GUPTA
Source: source

ALL AMERICANS MUST SEE THIS ;-THIS IS WHAT HAPPENED IN AFGHANISTAN;-OUT OF YOUR TAX MONEY ONLY

 


Without Malice to any one and just on a lighter note.Can we call KMB as Ashraf Ghani of Telecom Sector who stepped down to the Taliban of Telecom Sector like CCI-DOT-Anti VIL Media.

 



















Monday, August 23, 2021

GTL INFRASTRUCTURE LIMITED VS CANARA BANK CASE STATUS AS PER SITE OF SCI-LISTED FOR SEP 6 2021

 

Diary No.Year
 

Diary No.- 7319 - 2020
GTL INFRASTRUCTURE LIMITED vs. CANARA BANK

Diary No.
7319/2020 Filed on 22-02-2020 12:03 PM
PENDING
   [SECTION: IX]
Case No.
SLP(C) No. 005256 - / 2020  Registered on 26-02-2020
(Verified On 29-02-2020)
Present/Last Listed On19-07-2021 [HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN and HON'BLE MR. JUSTICE B.R. GAVAI]
Status/StagePending - (Motion Hearing
[DISPOSAL/FINAL DISPOSAL AT ADMISSION STAGE - CIVIL CASES]) List for Final Hearing/Disposal At Misc. Stage, Week Commencing (06-09-2021)-Ord dt:19-07-2021
Tentatively case may be listed on (likely to be listed on)06-09-2021 (Computer generated)
Category1010-Company Law, Mrtp, Trai, Sebi, Idrai & Rbi : Matters pertaining to TRAI / SEBI / IDRAI and RBI including Appeals U/S 18 of TRAI Act, Indian Electricity Act, 1910 and 2003, Electricity Supply Act, 1948 and Electricity Reforms Commission Act, 1998
Act
Petitioner(s)

  1 GTL INFRASTRUCTURE LIMITED
  AUTHORISED REPRESENTATIVE PRATIBHA MULE 3RD FLOOR, "GLOBAL VISION", ELECTRONIC SADAN NO. II MIDC, TTC INDUSTRIAL AREA, MAHAPE NAVI MUMBAI ,NAVI MUMBAI , MAHARASHTRA

Respondent(s)

  1 CANARA BANK
  MANAGER 112, J.C. ROAD , DISTRICT: . ,BANGALORE , KARNATAKA

  2 CORPORATION BANK
  MANAGER O/AT P.B. NO. 88, MANGLADEVI TEMPLE ROAD, MANGALORE , DISTRICT: . ,MANGALORE CITY , KARNATAKA

  3 INDIAN BANK
  MANAGER O/AT NEW NO. 66, RAJAJI SALAI, CHENNAI-1 , DISTRICT: . ,CHENNAI , TAMIL NADU

  4 VIJAYA BANK
  MANAGER O/AT 41/2 M.G. ROAD, BANGALORE , DISTRICT: . ,BANGALORE , KARNATAKA

  5 IDBI BANK
  MANAGER FORMERLY KNOWN AS INDUSRIAL DEVELOPMENT BANK OF INDIA, O/AT IDBI TOWER, WTC COMPLEX, CUFFE PARADE , DISTRICT: . ,MUMBAI , MAHARASHTRA

  6 LIFE INSURANCE CORPORATION OF INDIA
  MANAGER O/AT 6TH FLOOR, YOGAKSHEMA, NARIMAN POINT , DISTRICT: . ,MUMBAI , MAHARASHTRA

  7 EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED
  MANAGER EDELWEISS HOUSE, OFF C.S.T. ROAD, KALINA , DISTRICT: . ,MUMBAI , MAHARASHTRA

Pet. Advocate(s)

  SANDEEP SUDHAKAR DESHMUKH[P-1]

Resp. Advocate(s)

  SARVESH SINGH[R-1]

  S. S. SHROFF[R-7]

   M. V. KINI & ASSOCIATES[R-6]

U/Section

Saturday, August 21, 2021

*Afghan - Taliban conflict is nothing but a drama Syria 2.0*



How many of you remember that in 2015, media published the dead child's picture on sea shore claiming it to be a syrian refugee child and gathered all support for syrian refugees and opened the doors of European countries for syrian and other Muslim refugees.

6 years down, you all know how the demography has changed in Europe. 

In next 5 years, most Europe will become Islamic. 

*Current Afghan - Taliban circus is nothing but a re-run of the same script.*

1. They described taliban as monsters who will kill Afghani but in reality they haven't killed anyone. Only stories of barbaric acts are flouting. 

2. By showing Kabul airport yesterday, they are gathering exactly the same sympathy for so called innocent Afghani.

3. *Lakhs of Afghani will take refuge in only non-Muslim countries and will start flourishing there.*

4. Remember, *these Afghani refugees will not go to Muslim Countries.*

5. These Afghani refugees are nothing but taliban who will carry the agenda of Islamisation of the non-Muslim countries.

6. They have already cleared all non-Muslim population in Afghanistan. 

*This is bloodless tectics to convert the world to Islam*


This write up was sent to me by Mr.Sunil Kumar Sharma they Whatsapp



Tuesday, August 17, 2021

DID YOU KNOW ? WHO INVENTED Email ? Not by an American but by an Indian named Shiva Ayyadurai .

 

Shiva Ayyadurai

From Wikipedia, the free encyclopedia

V. A. Shiva Ayyadurai (born Vellayappa Ayyadurai Shiva, December 2, 1963) is an Indian-American engineerpoliticianentrepreneur, and promoter of conspiracy theoriespseudoscience and unfounded medical claims.Ayyadurai holds four degrees from the Massachusetts Institute of Technology (MIT), including a Ph.D. in biological engineering, and is a Fulbright grant recipient.

In a 2011 article published by Time, Ayyadurai claimed he invented email as a teenager in the late 1970s. Historians strongly dispute this account however because email was already in use in the early 1970s. Ayyadurai has rejected this narrative and won damages from Gawker Media for making defamatory statements, but a similar dispute with Techdirt was settled out of court with no money changing hands.

Ayyadurai also attracted attention for two reports: the first questioning the working conditions of India's largest scientific agency; the second questioning the safety of genetically modified soybeans. During the COVID-19 pandemic, Ayyadurai became known for a social media disinformation campaign about the coronavirus; spreading conspiracy theories about the cause of coronavirus; promoting unfounded COVID-19 treatments; and campaigning to fire Anthony Fauci for allegedly being a so-called "deep state" actor.

He garnered 3.39% of the vote as an independent candidate in the 2018 U.S. Senate election in Massachusetts, and ran as a Republican in the 2020 U.S. Senate election in Massachusetts, but lost to Kevin O'Connor in the primary.


Used these extracts here for educational purposes only


Saturday, August 14, 2021

UNDERSTANDING DAY STOCK TRADING :-SOME IMPORTANT WRITEUPS THRU QUORA

 


No.1

First, I will explain what is day trading?

Day trading is defined as the purchase and sale of a security within a single trading day. It can occur in any marketplace but is most common in the foreign exchange and stock markets. Day traders are typically well-educated and well-funded. They use high amounts of leverage and short-term trading strategies to capitalize on small price movements in highly liquid stocks or currencies.

Here I am sharing some strategies for day trading.

Scalping. Many day traders sell as soon as a trade becomes profitable, after covering commissions, interest costs, and overhead. This strategy is effective as long as the majority of small trades are in fact profitable and the trader is equally quick to curtail losses.

Fading. Many traders short sell stocks with rapid upward movement, anticipating that other investors may take a long position. The combination of short-sellers and those taking a profit creates an imbalance between buys and sells, driving the stock downward.

Daily Pivots. Anticipating that many stocks trade in a daily range, day traders may buy at the low price (a “support” level) and sell at the high price (a “resistance” level) or, conversely, short sell the stock at resistance and buy back the position at support.

Momentum. Traders buy a stock if it is moving upward with increasing volume. They sell when the price is trending downward with volume, assuming that the price direction continues after they take a long or short position, so they can close the transaction with a profit.

Now I m sharing some real facts about day trading.

Be prepared to suffer severe financial losses.

Day traders do not "invest".

Day trading is an extremely stressful and expensive full-time job.

Day traders depend heavily on borrowing money or buying stocks on margin

Don't believe in claims of easy profits.

Watch out for "hot tips" and "expert advice" from newsletters and websites catering to day traders.

Remember that "educational" seminars, classes, and books about day trading may not be objective.

Check out day trading firms with your state securities regulator.

I have shared my strategy on intraday trading but as per the question I can say as per my experience it is very risky, I never prefer intraday trading as I have lost so much when I was doing it on my own in the beginning. I would suggest if you have enough capital then go for positional only if your strategy is perfect and market movement is in favor of yours then you will get the profit in intraday only.

After losing so much, in the beginning, decided to take advice from any advisory firm and met my research team. Through their strategy only I have learned that if your strategy is perfect it is possible for you to earn in intraday with the positional call itself.

Stay Safe Stay Happy !!!!!! 

No2 

In the days before personal computers, instantaneous communications, and sophisticated software, many Wall Street brokerage firms employed veteran traders to sit and interpret the paper tapes of stock transactions that spewed from mechanical tickers across the city. These traders, known as tape readers, would note the price and volume pattern of individual trades in the hopes that they could identify opportunities for quick profits. For example, if the latest trade of a stock differed significantly from previous trades in either price or volume, this might be interpreted as the work of insiders acting before news that could affect the company is announced. The tape readers would then act similarly, hoping their intuition was correct.

Definition of Day Trading-

By definition, day trading is the regular practice of buying and selling one or more security positions within a single trading day. No position, long or short, is held overnight. Day traders frequently deal in thousands of shares, often with leverage, and look for small-percentage profits on each trade – often less than $1 or $2 per share. They take positions based upon their analysis of a stock’s probable price direction within the trading period.

Risks of Day Trading-

Despite the benefits, day traders must manage a number of financial and psychological risks-

2.Capital Loss-

Even if a majority of trades are profitable, considerable up-front costs such as hardware, software, and initial news services must be paid before one can begin trading. Also, ongoing expenses such as ECN fees (or commissions if the trader is not using an ECN), interest, real-time news fees, financial analysis and charting packages, and communication charges must be maintained.

2.Market Movement-

Michael Sincere, day trader and author of “Start Day Trading Now,” claims it is hard to make money when the market moves less than 100 points in either direction from the day before. According to Money Beat, 2013 was one of the least volatile years of the S&P 500, moving an average of 0.55%, below its post-1928 average of 0.76%. Too many traders are chasing too few opportunities, meaning that only those quick enough to recognize an opportunity and act are likely to make money. Being late on a trade can turn a potential profit to a loss.

3.Psychological Addiction-

According to Ed Looney, executive director of the Council on Compulsive Gambling of New Jersey, day trading is “like crack cocaine – it’s much more addicting than other kinds of gambling.” Some psychologists suggest that gamblers and day traders are similar in that they tend to be competitive and of above-average intelligence.

  

No 3 

If you have ever thought about day trading then you need to know that it can be a very risky endeavor to get involved with. Day traders rapidly purchase and then sell stocks during the course of the day with the hope that these stocks will continue to go up in value or drop in value for the minutes (or in some cases seconds) that the traders own the stocks for. This would make it possible for them to lock in fast profits. Day traders very often buy on money that is borrowed with the goal in mind of reaping higher profits by way of leveraging. The down side to this is that they also run the risk of having to cope with higher losses.

It is important to point out that day trading is by no means illegal nor could it be described as being unethical. However it can be very risky. How risky depends upon the stakes and how many of your dollars you are willing to put at risk. The average individual investor does not have the money, the time or even the energy or temperament to earn money in this manner and to risk the huge losses that can accompany day trading.

There are certain aspects of day trading that every investor should be aware of before they decide if it is for them. First of all day traders often suffer devastating financial losses during the first few months of trying it out. What this means is that they are forced to bow out before they can reach the point where they will see profit coming from their day trading activities.

Due to the potential for loss and the outcomes that day trading often brings with it those who still wish to try it out for themselves should never use money that they need to pay their mortgage or rent or their day-to-day living expenses. They should also not use money that has been set aside for retirement or take out a second mortgage. It is a gamble that you are not likely to win and it is not worth it, especially if you have a family that is depending upon you to make smart financial choices.

If you want to invest then you need to know that what day traders do cannot be described as honest to goodness investing. What they do instead is they watch for split second opportunities. They sit in front of computer screens and practically glue their eyes to them. They look for stock that is either climbing or falling in value. Their wish is to ride the momentum of any given stock and then get what they want from it before it switches to another course and goes up or down.

The day trader has no idea which direction the stock will go in. The hope is that it will move in one specific direction, be it up or down. Those who are bonafide day traders do not own any stocks overnight due to the risk that prices will alter in a radical nature from one day to the next which would lead to devastating losses for them. Day trading is very unstable and nerve wracking to partake of.

To be a day trader you must be committed to watching the market continuously throughout the run of the day. That means that you cannot allow your eyes to stray too far from the computer terminal or you could miss something. This is very difficult to do and demands a high level of focus and concentration. You must watch and process in your head dozens of ticker quotes as well as price fluctuations in order to spot the trends in the markets. The risk to you all depends upon how much money you are willing to put on the line. 

 

DAY TRADING ON MARGIN

What is day trading on margin?

Day trading, otherwise known as intraday trading, is the practice of selling securities that one has bought within the same day itself with the goal of locking in instant profits from stock price movement. Day trading on margin allows a trader to borrow funds from their broker so they can buy more shares than the cash that is currently within their account. Intraday trading margins also allow traders to short sell their positions. By utilizing the power of leverage one gets to amplify their returns.

However, one can also potentially amplify losses. Day trading has its inherent risks since it is highly dependent on the fluctuations in the prices of the stock on any given day. Intraday margin trading can result not only in substantial profits but also huge losses in a short period of time. One’s margin is calculated by considering the total exposure the client has in the current market. One’s margin is the total of their VAR or ‘value at risk’ and their ELM or ‘extreme loss margin.’

In short, day trading no margin allows an intraday trader to increase their buying power. They are allowed to buy greater amounts than they currently possess the cash for, with their brokerage firm filling their shortfall at interest. As the dictum does, with higher risk comes high returns. A fair warning is that there are no guarantees to these returns. Margin trading for day traders has certain requirements. These are as follows.

Margin Requirements by SEBI

According to guidelines detailed by SEBI, those who wish to trade on margin need to maintain 50% of their total investment amount as their initial margin and 40% of the market value as their maintenance margin respectively. SEBI has also mandated that these amounts need to be paid in cash. Until this year, traders were required to meet their margin requirements in their account by the time the trading day ended. New margin rules from the Securities and Exchange Board of India, however, require that one fulfill their obligations for margin trading at the beginning of each new intraday deal.

The stock exchange will calculate a trader’s margin requirements based on how volatile the market is, which constantly fluctuates throughout a single trading day. From the 1st of December, a clearing corporation that is an official entity under the stock exchange will send at least four client-wise separate intimations each day so traders can meet their intraday trading margin requirements.

Since September of 2020, the margin requirement for trading on the cash market has also been changed by SEBI. Intraday traders, for example, have to deposit about 20% of the funds from their total transaction volume with their broker so that they can avail of the margin facility. As collateral, one is required to pledge any existing securities. Simply ask your broker for the latest list of instruments you have invested in which can be used as collateral by you.

What are Day trading Margin Calls?

Day trading margin calls, as well as a maintenance amount for margin trading, are required for intraday margin trading in India. As an intraday margin trader, you are required to maintain a certain amount in your account when you are margin trading. If you fail to maintain this amount within the same trading day, a margin call will be issued. The call will demand you to either close out your positions, or add money into your account to bring it back upto to margin maintenance value.

A margin call can hike up one’s costs in the case where one’s trades underperform for whatever reason. Consider the following example when it comes to day trading on margin. Let’s say that a trader has ₹20,000 more than the amount required for margin maintenance. This will give the trader with day trading purchasing power of ₹80,000 if she traders on a 4x margin (4 x ₹20,000). Suppose that this trader indulges in purchasing around ₹80,000 of ABC Corp’s stock at 9:45 am.

At 10 am, the trader then goes ahead and purchases ₹60,000 of XYZ Corp on the same day. She has now exceeded her purchasing power limit. Even if she were to sell both of these positions during her afternoon trade, she will be receiving a day trading margin call on the next trading day. Note that the trader could have prevented herself from receiving the margin call if she chose to sell the ABC Corp stock before purchasing the XYZ Corp stock.

Sebi's New Margin Norms Kick In. Here's What They Mean For Market Players

Between December 2020 and February 2021, traders had to pay at least 25 per cent of the peak margin; the margin was raised to 50 per cent between March and May, and will be 75 per cent from June to August

The new peak margin norms of 75 per cent imposed by the Securities and Exchange Board of India (Sebi) to curb speculative trading have kicked in today i.e. June 1, 2021. Margin trading implies that traders purchase shares by paying a marginal amount of the actual value to the brokerages concerned. Under the new margin rules, 75 per cent of the required margin for all equity and derivatives positions will be collected upfront by brokerages.

Sebi has been implementing new margin trading rules in a phased manner from last year. Between December 2020 and February 2021, traders had to pay at least 25 per cent of the peak margin. The margin was raised to 50 per cent between March and May, and will be 75 per cent from June to August. The margins will be raised to 100 per cent from September 1, according to the market regulator.

Moreover, under the new system, investors will no longer be premitted to use shares lying in their demat accounts to make margin payments unless such shares are pledged with the broker after a proper client authorisation process. The client authorisation will take place through email and a one-time password (OTP). And clients will have to pay a penalty for any shortfall in margins.

 

The new margin rules may impact intraday trading volumes as brokerages would not be able to provide the same leverage as was done earlier. On the other hand, the new margin system is likely to strengthen the risk management system and make the markets more efficient in the long term.

BSE clampdown hits small, mid-cap stocks

21 stocks locked in lower circuits; 2,500 close in red

A mad rush among retail investors to get out of small and mid-cap stocks on Tuesday led to a panic situation. As many as 521 stocks were locked in lower circuits with no buy orders for them. A BSE circular is being cited as a key catalyst for panic selling in a large number of small and mid-cap stocks.

On Monday, BSE said it was capping the rise in share price of stocks exclusively listed on its platform. Brokers said that any kind of curbs on free movement of stock prices is a suppression of free markets and will not be accepted by investors.

Market regulator SEBI had given its ascent to such a measure, which the brokers are now calling draconian. There are nearly 2,000 stocks that trade only on the BSE and the exchange stands to lose volumes in these counters due to the curbs, brokers said.

 Additional surveillance

BSE said that its move to cap the rise in share price was part of additional surveillance measures. India is one among the few global markets that have stringent caps on the share price increase. A stock, which is not in the derivatives segment, can rise by a maximum of 20 percent. Similarly, there are shares that attract circuit filters 2 per cent to 10 per cent every day. Then, there are several shares where delivery is compulsory and they also require 100 per cent upfront cash to purchase them.

Brokers say traders are more attracted to derivatives as any stock in the segment is free to rise any number of times and option prices can move even 1,000 or 2,000 times in a short span of time and nobody schemes manipulation. However, the view within BSE is that the exchange will act if anyone points out that its platform was used for share price manipulation.

BSE said its new cap on price rise will be in addition to the existing measures and circuit filers. As per the Monday circular, a stock that is priced at ₹100 and already in the 10 per cent circuit filter category can rise only by ₹30 in a week and ₹100 in three months. Similarly, stock priced at ₹100 can fall by ₹25 in a week and ₹50 in three months. It has spelled out several such caps with regard to stocks that attract circuit filters between 2 per cent and 20 per cent.

Though benchmark indices closed with marginal gains on Tuesday, small and mid-cap stocks witnessed heavy selling with 2,500 stocks closing in the red. The S&P BSE Midcap was down 0.85 per cent while the S&P BSE Smallcap was down 2.05 per cent.