“Many young people who have entered that market have lost money… nobody could have expected that,” she stated. The markets regulator chief was talking at an SBI Mutual Fund’s occasion to mark the milestone of crossing the Rs 10-lakh-crore AUM, the primary fund home to accomplish that. “At a macro-level, we are worried that the household savings are not going into capital formation but into speculative activities.”
Over the previous couple of months a number of of the ministers and high govt officers, together with Sebi chairperson herself, have been warning about this development of extreme hypothesis within the F&O section.
Data from Sebi’s newest month-to-month bulletin confirmed that in May this yr, the full turnover within the fairness derivatives segments of the 2 bourses collectively was Rs 9,504 lakh crore, an increase of 71% over May 2023 determine, which was at Rs 5,548 lakh crore. In comparability, the combination turnover within the money section in May 2024 was Rs 26.4 lakh crore. Last yr, a analysis paper by the regulator confirmed that almost 9 out of 10 traders within the F&O house misplaced cash.
To rein in extreme hypothesis that might have an effect on the entire financial system in any main means, Sebi is predicted to suggest a 5x improve within the minimal contract dimension within the F&O section. Earlier this week, it additionally proposed a brand new product in that may permit rich traders to commerce within the F&O house, however by way of the extra regulated mutual fund route.
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