Sebi new rule: Market Regulator SEBI has announced to implement the new position limit on intraday derivative trading (F&O). The new rule will come into effect from 1 October. Under this new rule, SEBI has increased the limit of intraday net position for index options from Rs 1500 crore to Rs 5,000 crore per unit. Its purpose is to balance the depth and stability of the market.

How much will be the limit of net intraday position now?

In the circular issued on 1 September, SEBI said that the Derivatives Market’s highest business segment will implement clear boundaries on intraday investment in index options. Its calculation will be done on the basis of new Futures-Equivalent (FuteQ) framework after adjusting long and short trades.

Under this framework, the net intrade position of a trader measured on the basis of futures-equivalent will be Rs 5000 crore. Due to this new rule, no investor will be able to take more positions than the limit fixed by SEBI. However, the gross position limit has been retained at 10000 crores, which will be applicable separately on long and short side. SEBI has also tightened the monitoring norms of exchanges for such large betting bets.

What will be the benefit of this?

SEBI says that some investors make big positions by taking excess leverages. This increases the risk in the market as well as volatility. Now with the new rule, traders will have to make positions according to the capital and margin available in real form. This will increase transparency and stability in the market. Also, retail investors will be saved from damage. With the installation of Pambadi on the limit, investors will now have to trades intraday inside the limit. That is, now traders will not be able to do big trade by taking more leverages, which will reduce the chances of loss for small retail investors to a great extent.

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Multibagger stock: Recently, after cutting the repo rate from the RBI, every public sector to private sector banks have cut interest rates. That is, now from savings to fixed account, returns are not available as before. In such a situation, the trend of people is moving towards the stock market. However, the stock market has its own different risk and its advantages.

But today we are going to tell you about the multibagger stock we are going to tell you. Those who invest in this stock have become millionaires. We are talking about East India Drums and Barrels Manufacturing Limited.

35000 percent return in five years

The stock of this company was 20 paise before five years ago, but today it has been Rs 71.62. Meaning, during the last five years, the shares of East India Drums and Barrels have given a return of more than 35000 percent. If someone had invested one lakh rupees in this stock five years ago, then today they would have increased to more than 3.5 crores.

The market cap of East India Drums and Barrels Manufacturing Company, which makes barrels and large drums for chemicals, oil and other industries, is Rs 105.81 crore according to BSE and it prepares more than 23 corpses every year.

Stock done rich

If we talk about the returns of the stock of this company in a year, then it has given a tremendous return of about 2000 percent. That is, if someone had invested one lakh rupees a year ago, he would have received 20 lakh rupees now. In the month of June last year, the price of this scalk was Rs 33.40, in six months, it was about 72 rupees, while after one year it has now increased to 71.62 rupees.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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