SEBI Chief surprised by increasing interest of investors in F&O, suggested focusing on getting returns in long term

Markets regulator SEBI Chairperson Madhabi Puri Buch today said she was confused and surprised by investors' interest in futures and options. According to him, 90 percent of people have lost their money in this segment but people's interest in it still remains. He has advised people to invest in the long term. Read what is the complete news.

Nov 20, 2023 - 17:05
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SEBI Chief surprised by increasing interest of investors in F&O, suggested focusing on getting returns in long term

Markets regulator SEBI Chairperson Madhabi Puri Buch today said she is 'confused and surprised' by the interest investors have shown in futures and options (F&O). According to him, 90 percent of people have lost money in this segment but still, people are interested in it.

According to SEBI Chief Madhabi Puri Buch, investors need to focus on the long term. He said that inflation-beating returns can be earned over the long term. Citing a SEBI research report, Buch said that out of 45.24 lakh traders in the F&O segment, only 11 percent made a profit.

According to a SEBI research report, participation in the F&O segment increased rapidly during the COVID-19 pandemic, with the total number of unique traders increasing by over 500 percent from 7.1 lakh in FY2019.

Butch has suggested all the investors invest in the long term and think about growing the money instead of losing money in F&O.

Buch pointed out that more than a third of investors in the F&O segment were in the age group of 20-30 years, compared to only 11 percent in FY19.

Futures and Options (F&O) are the major types of stock derivatives trading in the stock market. These are contracts signed by two parties to trade a stock asset at a predetermined price at a later date.

Such contracts attempt to hedge against the market risks involved in stock market trading by fixing the price in advance.

Muskan Kumawat Journalist & Writer