Sebi: India retail investors lose money | Chiranjivi Chakraborty posted on the topic | LinkedIn (2024)

Chiranjivi Chakraborty

Equities Reporter

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In India retail investors make up 35% of options trades. Institutions, seeking to hedge their risk or profit for their companies’ accounts, handle the rest. Regulators are alarmed that regular folk are bypassing the tried-and-true way to build wealth: buying and holding stocks and mutual funds.Instead they’re engaging in pure speculation. The average time an Indian trader holds an option is less than 30 minutes, according to data from mutual fund provider Axis Asset Management Co. “If you want to gamble, if you need diabetes and high blood pressure, then go into this market,”Ashwani Bhatia, a board member on the nation’s top stock market regulator, said last year.His agency, the Securities and Exchange Board of India, known asSebi, says 90% of active retail traders lose money trading options and other derivative contracts. In the year ended March 2022, the latest for which figures are available, investors lost $5.4 billion. That amounted to $1,468 apiece, no small matter in a country with a per capita gross domestic product that year of $2,300.With Akshay Chinchalkar, CMT, CFTe, EPATian and Ashutosh JoshiRead more in ourBloomberg Newsstory in the link below.

Retail Traders Are Losing Billions in India’s Booming Options Market bloomberg.com

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Ivano Pietro Ottolini

1mo

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Ahaha...everywhere

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    • Sebi: India retail investors lose money | Chiranjivi Chakraborty posted on the topic | LinkedIn (11)

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