How can CAS enable manipulation?
->Around 3:24 PM, 78,000 PE was ~₹150 with OI ~2.5M. Within minutes, OI jumped to ~6M.
->At the same time, 78,000 CE was ~₹2, while OI fell from ~8M to ~2M.
Who sold ₹150 PE just 2 mins before expiry?
It’s manipulation, not price discovery.
Finance Ministry has released the data showing net losses for retail traders fell to ₹91,685 crore in FY26 from ₹1.12 lakh crore in FY25
Government is stating they were able to reduce the loss of retail traders by increasing STT and margin requirements
This conclusion is missing four important points :
1. STT Collection : The greed of collecting STT from traders is at an all-time high. Government's collection from STT has increased from 6,634 Crores in FY 22 to 27,695 Crores in FY26. The important point here is that fewer traders are paying more STT now, which actually hits the P&L statement. STT Collection has increased by 318% in comparison to 35% growth in India's GDP in 4 years.
2. Active Traders: India witnessed exponential growth in the number of F&O Traders. We went from 42.74 lacs to 98.1 lacs in just 4 years. The number has now fallen from 98.1 lacs to 78.6 lacs in just 1 year. These ~20 lacs are now moving onto more risky platforms, which include crypto platform offerings with 100 times leverage and India is still losing net money. We may see rise in dabba trading culture too.
3. Average P&L : We managed to reduce the number of traders but the average loss for traders has increased from ₹ 1,13,913 to ₹ 1,16,913. This shows that the average trader is now losing more money due to new regulations.
4. Milking STT : Government has further increased STT on futures and options by 150% and 50%, respectively, in the 2026 budget. This is effectively equivalent to milking traders for just participating in markets, as you pay STT on the transaction irrespective of loss or profit.
Market Participants lost 91,685 Crores in F&O, but 27,696 was collected by the government in the form of STT
India's top 5 brokers made a cumulative profit of 10,300 Crores in FY2025 and the government made 22,225 Crores during the same period from charges on transactions only
The job of the government is to regulate markets instead of thinking of it as free money for their revenue collection to distribute it as freebies to win elections
STT is very close to paying protection money on F&O & equity transactions without any protection benefits
If we really want to make Indian markets efficient and turn them into a global hub, we need to address the unfair charges on market participants
@TheTradeScout I am in. But, I wonder the thick skinned FM didn't listened to even FIIs. Will they listen?
One suggestion is, stop SIP in addition to this kind of protests. Per month, SIP investments are 31000 cr. If that inflow is cut, they may bend.
@PRSundar64 Sir, I am just your follower, but know you by heart. Was very sad because of the incidents. If God exists, and goodness prevail, they must protect you.
Want you to Passover this period. Waiting for your jokes, and smiley face again.
@sharadjhun Before implementing any new system, they were asking exchanges, brokers, participants, test it, trial it and then implant slowly step by step.
Why they took this step all of a sudden?
F & O Trader.
First month : Profits. The market is alluring.
After a few months : Profits are almost eaten up. Hope is there.
After 7 or 8 months : Losses. Oh, I wouldn't have done this, that..oh.
After a year and half: Self explanatory.