Sebi study suggests 89% retail traders in equity F&O suffered losses

Sebi on Wednesday said it will soon issue guidelines on additional risk disclosures required to be made by brokers and exchanges to investors as its study suggested that every 9 in 10 individual traders in the equity F&O segment suffered losses in FY 2021-22.

The findings, part of a study conducted by the regulator under the supervision of a working group, analysed the trading by individual investors with regard to net profit or loss encountered by them in the equity F&O (Futures & Options) segment for the period FY19 and FY22 only.

The study is based on a sample of all individual clients of all the top-10 stock brokers, accounting for 67 per cent of the overall individual client turnover in the equity F&O segment during FY 2021-22.

It revealed that 89 per cent of the individual traders (9 out of 10 individual traders) in the equity F&O segment incurred losses, with an average loss of Rs 1.1 lakh during FY22. Moreover, 90 per cent of the active traders incurred ...