year 2020 That is, after the Corona epidemic, the number of investors in the stock market has increased rapidly. New investors entered the stock market to earn big money. This trend is still going on. However, many investors are suffering huge losses. The biggest loss has been suffered by investors investing in Futures and Options (F&O). Small investors use it completely like speculation, due to which they have suffered losses of crores. According to SEBI, every year investors are losing Rs 60,000 crore in F&O.
Heavy loss in derivatives trade
SEBI chief Madhabi Puri Buch said that investors in the Indian stock market are losing about ₹ 60,000 crore in derivative trade in a year. If ₹ 50-60,000 crore is being spent in the F&O (futures and options) segment from domestic savings in a year, then this money can be used properly in the upcoming IPO, mutual funds or perhaps in the economy. In a program organized by NSE, Buch said that this is a very big issue. It needs to be controlled in time. It is worth noting that from SEBI chief to Finance Minister Nirmala Sitaranam, concern has been expressed on the increasing deal in futures and options. According to SEBI data, 9 out of 10 investors investing in futures and options have to suffer losses.
Preparations to tighten rules on futures and options
In view of the losses being incurred by investors in futures and options deals, SEBI is now preparing to implement strict rules. In this context, SEBI has sought suggestions from stakeholders on its consultation paper. In its consultation paper, SEBI has proposed measures such as rationalizing weekly expiry, monitoring the scope of deals during day trading, making prices reasonable, removing calendar spread profit on the day of settlement of F&O deals and increasing the near contract expiry margin. SEBI has invited public comments on these proposals by August 20.
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