The growing attraction of people towards the derivatives segment i.e. futures and options has increased the concerns of the market regulator SEBI. Regulatory chairperson Madhabi Puri Buch once again expressed concern over its increasing trend and said that now it has become a widespread issue and now it needs to be reviewed.
This trade has become an economy level issue
SEBI chairperson was participating in a program of SBI Mutual Fund on Friday. During the program, she said – Earlier it was a small issue (micro issue) at the investor level, but now it has become a big issue (macro issue) at the economy level. This is why we feel compelled to review.
9 out of 10 investors incur losses
This concern of SEBI chairperson is not without reason. In the recent past, the participation of retail investors has increased in the F&O segment. The futures and options segment is considered to be very risky. SEBI data shows that 9 out of every 10 retail investors incur losses in the F&O segment. This is the reason why experts advise investors to stay away from the derivatives segment.
Finance Minister has also expressed concern
SEBI has already expressed concern on futures and options trading several times. The market regulator also takes various measures from time to time to reduce the attraction towards the F&O segment. Till now, SEBI’s efforts have mainly been to alert investors by making them aware and educated. Finance Minister Nirmala Sitharaman has also expressed concern over the increasing participation of investors in futures and options.
Youth are bearing the most loss
According to the SEBI chief, the futures and options segment is completely based on speculation. The money that people should use to build wealth is getting diverted into futures and options based on speculation. Youngsters are losing huge amounts of money in such trades. He clearly indicated that in the coming days, SEBI may play a more active role in keeping investors away from such trades.
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