91% of individual F&O traders lost money in FY25 despite Sebi curbs: Study

However market regulator Securities and Trade Board of India’s (Sebi) measures to curb speculative buying and selling exercise within the futures & choices (F&O) phase, almost 91% of particular person merchants incurred internet loss in within the fairness derivatives phase (EDS) in FY25 on the combination stage, just like the developments noticed in FY24.

A Sebi launch on Monday mentioned that the regulator analysed the revenue and lack of particular person merchants in EDS to reach on the conclusion.

Sebi October 1, 2024 round had launched measures to strengthen the fairness index derivatives framework.

Sebi’s revelation was in response to sure media experiences which had highlighted the influence of those measures.

“With a view to current the factual influence of those measures, the buying and selling exercise of each (i) all buyers and (ii) particular person buyers, for the interval December 2024 to Could 2025, has been analyzed,” the discharge mentioned.

Sebi mentioned that it has accomplished the total examine on the influence of the measures on the buying and selling exercise in EDS vis-à-vis the home money market.The opposite key findings for the interval December 2024 to Could 2025 throughout each the inventory exchanges are:1) Index choices turnover, year-on-year, is down by 9% in premium phrases and 29% in notional phrases. Nonetheless, in comparison with 2 years in the past, index
choices quantity is up by 14% in premium phrases and 42% in notional phrases.

2) Turnover of people in premium phrases in EDS is down by 11% YoY and up by 36% over related interval two years in the past.

3) Variety of distinctive particular person buyers buying and selling in EDS is down by 20% in comparison with earlier 12 months and up by 24% from 2 years in the past.

4) India continues to see a comparatively very excessive stage of buying and selling in EDS, in comparison with different markets, notably in index choices.

The Monetary Yr clever development for 6-year interval i.e. FY20–FY25 together with evaluation of revenue and lack of particular person merchants in EDS is roofed within the full examine carried out by SEBI.

Sebi mentioned that it’s going to proceed to look at the developments in turnover of index choices from the angle of guaranteeing investor safety and market stability.

The regulator on Could 29 issued a round to be able to make sure that the speedy progress in derivatives market matches with commensurate danger monitoring metrics. Among the measure that had been taken by it embrace higher monitoring and disclosure of dangers in derivatives, lowering situations of spurious ban durations for derivatives on single shares and higher oversight over the potential of focus or manipulation danger in index choices

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