Search

    Language Settings
    Select Website Language

    GDPR Compliance

    We use cookies to ensure you get the best experience on our website. By continuing to use our site, you accept our use of cookies, Privacy Policy, and Terms of Service.

    newshunt
    newshunt

    Government Can’t Stop Retail Investors From F&O Trading, Says Finance Minister

    3 months ago

    Mumbai, Nov 6 (PTI) Finance Minister Nirmala Sitharaman on Thursday said the government cannot restrain retailers from trading in Futures and Options (F&O) but will definitely create awareness regarding the risks involved in putting money in such instruments.

    The statement comes days after Sebi chairman Tuhin Kanta Pandey ruled out shuttering the weekly derivatives contracts in Nifty and Sensex.

    Responding to a question on the government's stance on the F&O segment, wherein retailers lose significant amount of money, Sitharaman said that the government "is not not here to shut the door on F&O trading but it can make aware people about the risks involved in the derivatives.

    At the same time, investors have the responsibility to understand the risks involved, she said while speaking at the SBI Banking and Economics Conclave 2025.

    She also sought suggestions for dealing with the issue of the retailers trading in F&O segment.

    A recent Sebi study that 91 per cent of individual traders in futures and options (F&O) incurred net losses in FY25-- collectively losing over Rs 1 lakh crore-- funds that could otherwise contribute to responsible investing and capital formation.

    The Securities and Exchange Board of India (Sebi) had introduced measures in November last year in a bid to curb excess speculation in derivatives trading.

    Futures contracts obligate the buyer and seller to transact at a predetermined future date and price, while options give the holder the right, but not the obligation, to buy or sell the asset at a set price within a specific period.

    These financial instruments are used for hedging risks, speculating on price movements, and arbitrage pricing differences. However, they come with significant risks, including leverage risk and market volatility, which can lead to substantial losses. 

    (This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

    Click here to Read More
    Previous Article
    Is LivLive ($LIVE) the Next 100× Crypto in 2025? 200% Flash Bonus Puts Maxi Doge ($MAXI) and Bitcoin Hyper ($HYPER) on the Back Foot
    Next Article
    Trump Reiterates His India-Pakistan Ceasefire Claims — This Time With an ‘Abandoned Jet’ Twist

    Related Business Updates:

    Are you sure? You want to delete this comment..! Remove Cancel

    Comments (0)

      Leave a comment