Supreme Court: Air Force Group Insurance Society qualifies as ‘State’ under Article 12  ||  SC: Anganwadi Workers With Degrees Are Eligible For The 29% Quota For Supervisors in Kerala  ||  SC: Giving Accused the Option of Search Before a Police Officer Breaches Section 50 of the NDPS Act  ||  Gujarat HC: Person is Entitled to Compensation For Injury or Death Within Railway Station Premises  ||  Delhi HC: PMLA Can Apply Even if the Scheduled Offence Occurred Before the Law Came Into Force  ||  J&K&L HC: Accused Can Admit Evidence Recorded under Section 299 Crpc After Appearing in Court  ||  J&K&L HC: District Judge Serving as Reference Court under Land Acquisition Act Acts as a Civil Court  ||  Del HC: Subsequent Bail Pleas From Same FIR Should Usually Go Before the Judge Who Denied the First  ||  J&K&L HC: Vaishno Devi Shrine Board, Despite Statutory Status, is Not a ‘State’ under Article 12  ||  SC: Confirmation of an Auction Sale Does Not Bar Judicial Scrutiny of Reserve Price Valuation    

SEBI underlines the need for analysis and disclosure of risks of trading in F&O- (Securities and Exchange Board of India) (25 Jan 2023)

MANU/SPRL/0002/2023

Capital Market

Under the supervision of a working group, SEBI has conducted a study analysing the trends in both participation and in profits and losses of individual traders in the equity F&O segment. The working group had representation from academia, clearing corporations, brokers, and market experts.

To compare results in a contextual manner before and after the pandemic, the study covers the periods of FY 2018-19 and FY 2021-22. The study is based on a sample of all individual clients of all the top-10 stock brokers, accounting for 67% of the overall individual client turnover in the equity F&O segment during FY 2021-22.

Some of the major findings of the study are as under:

• There has been a significant increase of over 500% in the number of individual traders in the equity F&O segment in FY 2021-22, as compared to FY 2018-19.

• 98% of individual traders in the equity F&O segment traded in options during FY 2021-22.

• 9 out of 10 individual traders in the equity F&O segment incurred net losses during both the years FY 2018-19 and FY 2021-22.

• On average, loss makers registered net trading loss close to Rs 50,000 in FY 2021-22. The average absolute net loss of a loss maker was over 15 times the net profit made by a profit maker.*

• Over and above the net trading losses incurred, loss makers expended an additional 28%* of net trading losses as transaction costs.

• Those making net trading profits incurred between 15% to 50%* of such profits as transaction cost.

SEBI believes that periodic data analysis and disclosure of this nature can significantly enhance investor awareness around market risks. With this in mind, SEBI will shortly issue guidelines in respect of additional risk disclosures required to be made by brokers and exchanges to investors.

Tags : DISCLOSURE   RISKS   TRADING  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved