Retail investors made staggering loss of Rs 51,689 crore in F&O in FY24 as trade volume increased at a reckless pace. How will Sebi and government moves to reduce such risks change the landscape now?
According to a study conducted by Sebi, 7 out of 10 individual intraday traders in the equity cash segment have incurred losses in FY2022-23.
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Of the many hazards that Covid brought is the rise of trading volume in the derivative markets, or Future and Options (F&O) trading by retail individual investors.
The increase in trading volume in F&O and higher retail investor participation in that segment improved businesses for brokerage firms, exchanges and government. So, why did the Securities and Exchange Board of India (Sebi), the markets regulator, intervene to clamp down F&O? Due to major losses incurred by gullible retail investors, making F&O trading a gambling pit.
According to a study conducted by Sebi, 7 out of 10 individual intraday traders in the equity cash segment have incurred losses in FY2022-23. The surge in these trades was unmatchable, rising over 300 percent in the number of individuals participating in intraday trading in the equity cash segment in FY 2022-23 compared to FY 2018-19.