F&O can’t be a national pastime: SEBI official

Coming down hard at futures and options (F&O) traders, Ashwani Bhatia, whole time member of the Securities and Exchange Board of India (SEBI), on Tuesday warned investors against chasing quick returns and turning the high-risk (F&O) trading into a ‘national pastime’.

“F&O cannot be a national pastime. We need to do serious investing and investors should participate in wealth that is being created in the country through pooled vehicles like mutual funds, or directly,” said the SEBI official at the 14th Morningstar Investment Conference.

India accounts for more than 50% of F&O volumes globally, but “this is a crown we do not wish to wear”, he said.

Bhatia’s comments come at a time when traders are protesting the series of regulatory changes SEBI has recently implemented to curb the rising participation of retail investors and punting of household savings.

The SEBI official warned retail investors against the risk of making heavy losses, pointing out that their odds are terrible, especially when competing with institutional players.

Also ReadBroader markets see deep cuts

Retail investors have consistently been losing money in the derivatives market, with 93% of them incurring an average loss of Rs 2 lakh. The combined net loss stood at Rs 1.81 trillion during the last three financial years (FY22-FY24), according to the SEBI’s latest study.

Bhatia advised first-time retail investors to enter the stock market through the mutual fund route or via direct investing, instead of F&O trading.

“This is becoming systemic. We need to become prosperous and cautious. SEBI has tightened margins in F&O and this will lead to a more cautious approach. This will lead to a more orderly market. To shield investors, measures were also taken to make F&O trading expensive,” the official said.

The six measures, which are set to be implemented by SEBI in a staggered manner from November 20, include higher contract sizes, rationalisation of weekly expiries and a 2% increase in extraordinary loss margin on all short options contracts on expiry day.

 » Read More

Related Articles

How much money do you really need for financial freedom in India? Rs 10 crore, Rs 50 crore or more?

‘I need 10 crore… then life is set!’ You must have heard this many times or maybe you have said it yourself. But is a huge amount like Rs 10 crore or Rs 50 crore really necessary to achieve financial freedom? This debate has been going on for decades and will continue in the future

Cognizant CEO Ravi Kumar sees 11% pay hike, takes home $16.1 million in 2024

Cognizant Technology Solutions has disclosed in its latest regulatory filing that its Chief Executive Officer, Ravi Kumar, received a total annual compensation of $16.1 million for 2024, marking an 11% increase from the previous year. In 2023, Kumar’s total compensation stood at $22.6 million, boosted by a significant one-time equity award granted at the time

Who are the world’s biggest hoarders of gold? The names will surprise you

Kings and maharajas across history had a deep connection with gold. It wasn’t just about wealth. Possessing gold was a symbol of power and status for them. In modern times, gold is more than a mere symbol of wealth – it’s the most trusted haven to fall back upon in uncertain times. No wonder, gold

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

How much money do you really need for financial freedom in India? Rs 10 crore, Rs 50 crore or more?

‘I need 10 crore… then life is set!’ You must have heard this many times or maybe you have said it yourself. But is a huge amount like Rs 10 crore or Rs 50 crore really necessary to achieve financial freedom? This debate has been going on for decades and will continue in the future

Cognizant CEO Ravi Kumar sees 11% pay hike, takes home $16.1 million in 2024

Cognizant Technology Solutions has disclosed in its latest regulatory filing that its Chief Executive Officer, Ravi Kumar, received a total annual compensation of $16.1 million for 2024, marking an 11% increase from the previous year. In 2023, Kumar’s total compensation stood at $22.6 million, boosted by a significant one-time equity award granted at the time

Who are the world’s biggest hoarders of gold? The names will surprise you

Kings and maharajas across history had a deep connection with gold. It wasn’t just about wealth. Possessing gold was a symbol of power and status for them. In modern times, gold is more than a mere symbol of wealth – it’s the most trusted haven to fall back upon in uncertain times. No wonder, gold

5 oldest gold ETFs in India: How their long-term returns stack up against physical gold

On April 18, 2025, at the time of writing this article, gold prices in India have breached the Rs 96,000 per 10 grams, driven by a host of domestic and global factors. In the international market, gold prices have crossed USD 3,300 an ounce level. There are many big reasons behind this unprecedented rise at

Apple takes a hit in Chinese smartphone market, shipments tumble 9% in first quarter

Apple is losing its ground in China’s smartphone market. According to a Reuters report, the smartphone’s shipments in China dropped by 9% when compared to the same period last year. The report suggested that Apple is the only major brand to have seen a major drop amid the ongoing trade war between China and the US.