Mumbai: In view of many retail traders’ Derivative-Fuzzles and Options (F&O) addiction and losing money, the capital market regulator Indian Securities and Exchange Board (SEBI) has succeeded in its measures raised by 2024 to remove retail traders from this gambling. It is known that 20 percent of the options in derivatives have left gambling addiction to traders.
Retail traders have started running away from this F&O segment, which is considered highly risky and boon for Indian retail investors. Due to which retail premium business and traders have seen a decline of 20 percent. It is noteworthy that last year, SEBI tried to stop the entry of retail traders in F&O in six phases. In which weekly termination was limited to one per exchange. Additionally, the size of the contract of options was also increased. The study found that retail traders have lost Rs 1.8 lakh crore by participating in F&O in the stock markets on a large scale in the last three years. After this, prevention measures were implemented in November last year. As a result, retail premium has decreased by 20 percent in January-February compared to April-October. The premium for institutions has been cut by about 25 percent.
The new F&O regulations have also led to a decline in option contracts, which remains at 80 percent in both retail and non-Khudra. Institutional investors have seen a decline in the amount of business since November, as well as the expiry day margin at the short position. The new proposals of SEBI on the index status range are likely to reduce institutional quantity further.
