Share Market regulator SEBI Chairperson Madhavi Puri Buch has once again expressed great concern about the Future and Option i.e. F&O category. He has also expressed surprise as to why it is not being made a big issue despite the loss being caused to 90 percent of the investors. Citing a study by SEBI, he said that the families of the country participating in the F&O category are facing a loss of up to Rs 60 thousand crore in a year.
In fact, the study has also revealed that 90 percent of the investors suffered losses due to this trending. SEBI Chairperson says that to save such a huge loss, this amount could have been invested in IPOs, Mutual Funds or other investment products. SEBI has also issued an advisory paper regarding this in which ways have been suggested to limit this activity.
Index derivatives rules will be tightened!
Buch said that even though the stock markets will get less charge due to lower F&O, it will be beneficial for everyone in the long term. Meanwhile, to reduce the losses incurred by common investors from futures and options trading, SEBI has proposed to tighten the rules of index derivatives, amendment in the minimum contract size in futures and options trading and provision of upfront margin for option premium. Said to do.
Earlier in the Economic Review Report 2023-24, concern was also expressed over the increasing interest of retail investors in the derivatives segment. According to the Economic Survey, speculative business has no place in a developing country.
SEBI released consultation paper
In its consultation paper, SEBI has suggested rationalizing weekly index products, monitoring trading hours during the trading day, rationalizing prices, removing calendar spread advantage on the settlement day of F&O trades and increasing the near contract expiry margin. Measures have been proposed. SEBI has sought people’s suggestions on these proposals till August 20.