Comment Text:
i0-001
COMMENT
CL-03109
From:
Sent:
To:
Subject:
Vamshi Krishna
Saturday, January 23, 2010 1:39 AM
secretary
Regulation of Retail Forex
Dear Secretary,
Ref: R1N 3038-AC61
Curbing the leverage limits from 100:1 to 10:1 would dampen the interest of retail inestor's interest in
forex transactions. Decreasing the leverage to reatil investors would not reduce the probelm of risk. The
participating mediataries should play a proactive role in educating the risk potential involved in the
trasactions. The mediataries coomercialisation in sharing the research related information with retail
customers is one of the cause for maxmising the risk of retail investors. Inestors acting without
informaion is the main causes for loss in forex transactions. Unexpected changes in the trend is the
prime cause for losses, reduction in leverage would increase the potential for losses. The move towards
reduction of leverage would add more problems to the existing problems instead of reducing, would
reduce inestor's interest in forex market.
Hoping that the leerage levels would not be reduced and sharing of informaion by intermediaries would
be increased.
regards
Vamshi
