After the first wave of Coronavirus onslaught tamed down, stock markets in most major economies rebounded from an unprecedented global slump towards the end of last year. The media too went on an overdrive to boost investor sentiment with stories of bull run. The outbreak of the second wave of the pandemic around March 2021 made the markets volatile, putting the economic recovery in uncertainty.
The economic and financial conditions set the ideal backdrop for spurious agents to mis-sell products across various segments of the capital market and insurance. Such volatile markets also put at risk the investments of thousands of people. In Mumbai alone, more than 20 stock brokers had defaulted last year, leaving investors under stress as they fought to regain their hard-earned money.
Brokers lure investors showing the bright prospects of trading in equities. Once the investor is in, without knowing his risk appetite, he invests in futures and options (F&O) segment. This is nothing but a way of mis-selling. Trading in the derivatives segment is considered a risky proposition for an average investor who is not even conversant with the simple cash market trading.
“The Securities and Exchange Board of India (Sebi) should put such measures in place that retail investors are not allowed to trade in F&O unless he gains proper and adequate knowledge of the subject. Also, it should fix certain upper age limit, say persons above 60 years of age, who do not understand intricacies of such trades, should be barred from trading in derivatives,” says Jagdish Bhatt, an advocate practising securities markets law in Mumbai.
Esta historia es de la edición May 2021 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición May 2021 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms
5 Questions That Will Lead You To The Right Financial Planner
Choosing a financial planner is not as easy as it may seem. Besides the right credentials, you should also consider things like the kind of services you will be needing-tax advisory, estate planning-as well as the fee structure. Here are five questions that will help you choose the right planner
Health Insurance Sub-Limits
Sub-limits in health insurance are restrictions placed by the insurance company on the SP maximum amount they will pay for specific expenses that are part of the total hospital bill.
Delayed Gratification, Humility, Understanding Inflation And Risks Key To Financial Success
The journey to financial success is continuous, requiring patience, education, and disciplined decision-making.
Avoiding Common Pitfalls through Asset Allocation and Multi-Asset Investing
Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.
Mutual Funds for Financial Growth
Mutual funds allow you to invest in small amounts and seize the compounding growth, and experts help tackle volatility and asset allocation, making them a potent tool to create wealth.
Multi-Asset Investing is The Financial Equivalent of A Well-Balanced Diet
Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.
Theme and Triumph: How Thematic Funds Can Boost Your Bottom Line
Thematic funds target high-growth opportunities in various industries and economic sectors, allowing investors to participate in future-focused segments to generate long-term returns.
Wealth Creation Through SIP - The Slow & Steady Road to Success
For investors seeking to create long-term wealth, SIPS are a powerful tool that enables regular, disciplined investments to generate compounding returns.
Tuition Fee Varies Among Countries
I am 22 years old and have recently started working in a software company.
