A study by the Securities and Exchange Borad of India (SEBI) has revealed that seven out of ten individual intraday traders in equity cash segment incurred losses in FY22-23. Notably, SEBI had previously released a similar study on 25th January ’23, on equity derivatives. That study showed that 9 out of 10 traders in the derivatives market experienced losses between the FY18-19 and FY21-22, with an average loss of ₹1.1 lakh per trader.
Q. What Is The New SEBI Study All About?
SEBI conducted a study analyzing trends in participation as well as profits and losses in intraday trading by individuals in the equity cash segment. It found that over 70% (7 out of 10) of individual intraday traders in this segment incurred losses in FY22-23.
Q. How Has The Participation Of Individuals In Intraday Trading In The Equity Cash Segment Been In Recent Years?
The SEBI study also found that there was a surge of over 300% in the number of individuals participating in intraday trading in the equity cash segment in FY22-23 to 6.9 million in FY22-23 from 1.5 million in FY18-19.
Q. What Was The Sample Size For The Survey?
The study is based on a sample of individual clients of the top 10 stock brokers in India, representing approximately 86% of the individual client count in the equity cash segment during FY22-23.
Q. What Are The Other Takeaways From The SEBI Study?
Key takeaways from the SEBI study include:
1) About one in three individuals who trade in the equity cash segment engage in intraday trading.
2) The share of young intraday traders (under 30 years old) grew to 48% in FY22-23 (post-Covid) compared to 18% in FY18-19 (pre-Covid).
3) The percentage of loss-makers among younger traders (under 30 years) was higher, at 76% in FY22-23, compared to other age groups.
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