Monday, July 7, 2025

Creating liberating content

BENGALURU: India’s French connection is growing stronger. French IT services

MUMBAI: Sebi chief Tuhin Kanta Pandey on Monday assured investors

MUMBAI: Tata Group has formed a committee comprising CEOs from

M Nagaraju, secretary of department of financial services NEW DELHI:

Related News

BENGALURU: India’s French connection is growing stronger. French IT services firm Capgemini, which has more than half of its 3.4 lakh employees in India, is acquiring one of the country’s

MUMBAI: Sebi chief Tuhin Kanta Pandey on Monday assured investors there were not many other risks in the market like the one seen recently in the event of market manipulation

MUMBAI: Tata Group has formed a committee comprising CEOs from its major operating companies to enhance safety measures across its businesses. Tata Sons chairman N Chandrasekaran stressed that safety has

M Nagaraju, secretary of department of financial services NEW DELHI: Fintech companies should go beyond urban markets and play a role in driving financial inclusion across the country by developing

A Waymo autonomous self-driving Jaguar electric vehicle sits parked at an EVgo charging station in Los Angeles, California, on May 15, 2024. Patrick T. Fallon | AFP | Getty Images

Donald Trump (File photo) US President Donald Trump on Monday decided to impose 25% reciprocal tariffs on Japan and South Korea – almost the same as those announced in April.He

Trending News

BENGALURU: India’s French connection is growing stronger. French IT services firm Capgemini, which has more than half of its 3.4 lakh employees in India, is acquiring one of the country’s

MUMBAI: Sebi chief Tuhin Kanta Pandey on Monday assured investors there were not many other risks in the market like the one seen recently in the event of market manipulation

M Nagaraju, secretary of department of financial services NEW DELHI: Fintech companies should go beyond urban markets and play a role in driving financial inclusion across the country by developing

Finance Minister Nirmala Sitharaman on Sunday said Brics is a vital platform for advancing inclusive multilateralism, especially at a time when global institutions are facing a crisis of legitimacy and

Cryogenic OGS pulled off a blockbuster IPO debut, with the Rs 17.77 crore issue subscribed an eye-popping 646.47 times by the close of bidding on Monday, July 7.Retail investors drove

The IT integration of recently amalgamated Regional Rural Banks (RRBs) under the ‘One State One RRB’ framework is likely to be completed by September 30, Nabard Chairman Shaji KV said

Sebi study flags high-risk trading trend: 91% individual traders posted net losses in FY25, turnover dips after Oct 2024 curbs, but volumes still high vs two years ago

Word Count: 715 | Estimated Reading Time: 4 minutes


Sebi study flags high-risk trading trend: 91% individual traders posted net losses in FY25, turnover dips after Oct 2024 curbs, but volumes still high vs two years ago

The frenzy in India’s equity derivatives markets has continued to punish small investors, with 91% of individual traders losing money during the financial year 2024–25, according to a new Sebi report released on Monday.This high failure rate comes despite regulatory efforts to rein in speculative activity. Sebi’s own data shows that October 2024’s reforms, aimed at curbing retail exposure to index options, have not yet translated into meaningful protection for most traders, according to ANI.“India continues to witness unusually high retail participation in equity derivatives, particularly index options, when compared with global markets,” the regulator noted.The study, which reviewed investor behaviour from December 2024 to May 2025, was prompted by recent media commentary claiming that investor losses were easing after Sebi’s tighter framework. The regulator countered those claims by publishing detailed numbers showing both the scale of participation and the extent of losses.Volumes dip, but remain elevatedWhile index options turnover dropped 9% in premium terms and 29% in notional terms year-on-year, the report pointed out that volumes still remained 14% and 42% higher, respectively, than levels seen two years ago.Among individuals specifically, premium turnover declined 11% over the past year, but is still up 36% from FY23. The number of unique retail traders in the equity derivatives segment has also fallen 20% from last year, though 24% higher than two years ago.These trends reflect a cooling off since the peak speculative boom, but the long-term surge in participation remains stark.Sebi’s six-year analysis (from FY20 through FY25) reveals a persistent pattern: the vast majority of retail traders are consistently losing money in equity derivatives trading. This has prompted the regulator to maintain close surveillance of market behaviour and flag potential systemic risks.“Trends in turnover of index options will continue to be observed from the perspective of ensuring investor protection and market stability,” Sebi said in its statement.To that end, new measures introduced on May 29, 2025, include stricter disclosure norms, enhanced risk indicators for derivatives products, and steps to minimise spurious ban periods in single-stock derivatives trading.Sebi has repeatedly highlighted that without improved risk awareness, India’s growing retail investor base could face significant harm. Monday’s report reinforces that concern, adding hard numbers to the regulator’s longstanding warnings.





Source link

Most Popular Articles

Sign In

Welcome ! Log into Your Account