Unchecked explosion in retail F&O trading may dent household finances, warns Nirmala Sitharaman
retail investors of the perils associated with the derivatives market stressing that «unchecked explosion» in the riskier futures & options (F&O) may potentially create problems in household finances.
«Any unchecked explosion in retail trading in F&O can create future challenges not just for the markets (but) for investor sentiment and also for household finances,» the FM said and PTI reported.
«Household finances have made a generational shift. We want to safeguard them,» she said while urging exchanges NSE, BSE and market regulator Securities and Exchange Board of India (Sebi) to work together and come out with robust compliances and regulatory standards to safeguard investors' interests.
The BSE and the NSE should mitigate systemic risk, ensure market stability, she added.
Sithraman said this in Mumbai at the BSE event 'Viksit Bharat 2047 — Vision for Indian Financial Markets'.
A study undertaken by Sebi has revealed that 9 of 10 retail investors suffer a loss on their bets in the futures and options market.
Last week, Sithraman in a tweet had said how public sector companies have benefited under the Narendra Modi-led NDA government. The total market cap of all 81 listed public sector undertakings (PSUs) has grown 225% under the Modi government while 79% returns by Nifty CPSE have “significantly outpaced Nifty 500 and Nifty 50 indices,” she had said.
She was responding to what she called charges by the Indian National Congress (INC) and its leader Rahul Gandhi that PSUs were being dismantled and were in
