Brokers flag retail F&O losses, urge Sebi action

Small Investors Lose Big

- NESIL STANEY

SEVERAL BROKERS AND fund managers have raised concerns over the continued heavy losses faced by uninformed retail participants in the futures and options segment, citing a lack of robust risk management practices. Despite recent measures by market regulator Securities and Exchange Board of India (Sebi), they said the segment still requires tighter controls.

"Financial savings from Indian households are going into speculative bets, and the Indian youth is losing tons of money. The issue has gone from a micro issue to a macro level," said a note from ICICI Direct, a brokerage. "The sanctity of the market is dead. Retail investors are getting burnt every day, particularly in the options market," said Dharan Shah, Founder, Tradonomy.AI—a research-driven AI-powered investment platform.