Nine out of 10 individual traders lost money in the futures & options (F&O) segment of the stock market in three years between 2021-2022 (FY22) and FY24, a study by the Securities and Exchange Board of India (Sebi) points out. An estimated 11.3 million retail investors collectively lost ₹1.81 trillion during the three years (an average of ₹2 lakh per trader); FY24 alone accounts for ₹75,000 crore in net losses.
The latest study follows the capital market regulator's January 2023 report, which had found that 89 per cent of individual F&O traders lost money in FY22.
Despite consecutive years of losses, more than three-fourths of the traders who suffered losses continue their F&O activity. In fact, the number of retail traders dabbling in F&O has increased from 5.1 million in FY22 to 9.6 million in FY24. No wonder then that the average daily turnover on stock exchanges has surged to a record high at ₹540 trillion in September compared with close to ₹360 trillion a year ago.
In FY24, nearly 7.3 million individual traders lost money, with an average net loss of ₹1.2 lakh per person, inclusive of transaction costs.
Only 7.2 per cent of individual F&O traders made a profit over the three-year period. About 1 per cent of individual traders managed to earn profits of Rs 1 lakh or more, after adjusting the transaction costs, while 3.5 per cent of those who lost (around 400,000 traders) incurred an average loss of ₹28 lakh over the last three financial years.
Where do these traders come from? What's their socioeconomic background? Well, over 75 per cent of individual traders had declared an annual income of less than ₹5 lakh.
"A rise in individual traders' participation in the F&O segment has kick-started a debate on product suitability and the need for safety nets and firewalls for individual investors," the latest Sebi study points out.
Bu hikaye Business Standard dergisinin November 25, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Standard dergisinin November 25, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
KEEPING UP WITH BRAZIL
If India wants to become a biofuel superpower like Brazil, it needs to get its ethanol 2.0 policies right
Indian cities reduce PM2.5 levels by 27% in 6 yrs: Report
Indian cities achieved an average 27 per cent reduction in PM2.5 pollution levels from 2019 to 2024, with those under NCAP alone recording a 24 per cent decline, a new report has found.
India adding N-power faster than global peers
India's nuclear power generation has grown twice as fast as the rest of the world in recent times.
Manmohan Singh was unfailingly measured, thoughtful and wise
It is both an honour and pleasure to have been invited to address this event in honour of Dr Manmohan Singh, the greatest man I have had the privilege of knowing.
Compare cited reasons with policy terms before challenging decision
Health and general insurers paid 82 per cent of claims by volume and 71.3 per cent by value (₹1.17 crore), according to the Insurance Regulatory and Development Authority of India's (Irdai's) annual report for 2023-24.
PVR Inox shares fade to black: Down 23%
Shares hit 44-month low as HMPV scare rattles market
Indo Farm shares up 27% on mkt debut
Shares of Indo Farm Equipment on Tuesday ended with a premium of over 27 per cent against the issue price of ₹215. The stock started the trade at ₹258.40, reflecting a premium of 20.18 per cent on the BSE. During the day, it jumped 33.44 per cent to ₹286.90. Shares of the firm ended at ₹272.70, up 26.83 per cent. At the NSE, it listed at ₹256, up 19 per cent. The stock ended at ₹273.69, a gain of 27.29 per cent. The company's market valuation stood at ₹1,310.37 crore.
Zomato shares fall 5% after Jefferies downgrade
Food aggregator Zomato's shares bled on Tuesday, as the stock plunged up to 5 per cent to hit an intraday low of ₹251.40 per share.
Q3 updates point to strong growth ahead for jewellery companies
Two leading listed jewellers, Titan and Kalyan, have just released their pre-quarterly updates for the third quarter of the current financial year (Q3FY25).
Equities may deliver 8-12% in 2025, says ABSL MF
In a year that is poised to be one of macroeconomic turbulence, with significant policy shifts and global trade uncertainties, investors should consider asset allocation strategies to capitalize on gains in all asset classes while reducing risks, Aditya Birla Sun Life Mutual Fund (ABSL MF) said in its outlook for 2025.
