FM Nirmala Sitharaman Warns On 'Unchecked Explosion' In Retail F&O Trading

Union Finance Minister Nirmala Sitharaman (File image: PTI)

A study undertaken by Sebi has revealed that 9 of 10 retail investors suffer a loss on their bets in the futures and options market.

Union Finance Minister Nirmala Sitharaman on Tuesday warned that “unchecked explosion” in riskier future and options trading by retail investors can create problems for household finances in the future.

“Any unchecked explosion in retail trading in F&O can create future challenges not just for the markets (but) for investor sentiment and also for household finances,” she said at an event at the BSE.

“Household finances have made a generational shift. We want to safeguard them,” she said.

A study undertaken by Sebi has revealed that 9 of 10 retail investors suffer a loss on their bets in the futures and options market.

Sitharaman also appealed to the BSE to work closely with markets regulator Sebi to help the investor confidence through stringent compliances and robust regulatory standards.

The BSE and the NSE should mitigate systemic risk, and ensure market stability, she added.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)

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