Forty percent of F&P merchants are less than 30 years old. This suggests that unemployed Young people are resorting to the trade trade, probably in the period, before obtaining permanent work | Photo credit: Istockphoto
How is a typical merchant visualized in the segment of futures and capital options? If you thought it was a geek sitting in front of a laptop full of numbers and graphics, going to exchanges in a nervous frenzy, you would be wrong.
A report published by Sebi helps us record a more precise profile of supposedly unfortunate individual merchants who are burning money in the capital of capital derivatives and must be protected from sharks.
It is more likely that the typical merchant be a man, since only 14 percent of these merchants are women. It could be in a narrower city like Bhiwandi or Tirunelveli or Bhilai. The study shows that 72 percent of F&P merchants come from beyond the 30 main cities. You are likely to be hitting the exchanges on your smartphone, while working in your store or while watching a movie or goes out with friends.
Most of these merchants do not have much capital to burn. About 75 percent of the people who negotiate in shares had revenues of less than ₹ 5 Lakh. This could imply that many merchants used derived trade to complement their existing income flow. Four of the merchants were quite young, less than 30 years.
Given these background, why does Sebi care about individual investors in F&P?
Why does Sebi care?
The stock market regulator is taking its main objective, “to protect the interests of investors in the stock market,” He has concluded that the derived trade is detrimental to the finances of small investors, and must be kept away from here. This conclusion was achieved according to the studies carried out by Sebi. One of these studies revealed that between FY22 and FY24, 1.13 million unique rupees of individual merchants had incurred net loss (including transaction costs) or ₹ 1.81 Lakh Crore in F&P. About 93 percent or individual merchants had made an average loss or ₹ 2 Lakh per person in the three years.
Individual investors entering the stock market have been the counterpart of large foreign corridors and investors who earned a lot of money in this period. The Sebi study shows that the owner merchants (runners that are quoted on their own) registered profits of ₹ 33,0000 billion rupees in fiscal year 200 were followed by foreign portfolio investors who registered profits of ₹ 28,000 million rupees. While Nris and PMS schemes also incurred losses in the fiscal year24, individuals made the largest loss or ₹ 41,500 million rupees.
Not substantial enough
Despite these numbers, there is a solid case so that Sebi does not spend too much worrying about individual investors in F&P.
One, the total number of retail merchants in F&O is not significant enough to justify so much alarm. There were 96 Lakh individuals in capital derivatives in the fiscal year24, according to Sebi. The number of total registered investors in the NSE, including cash and derivative segment, was 10.9 million rupees or December 2024. The numbers suggest that only 9 percent of the group of total investors are entering futures and options and 91 percent are separating layando giving circling to which most investors in the cash segment are long -term investors.
Two, if we praise the number of derived merchants as a proportion of the total population in the working age, represent less than one percent.
Since the proportion of population of workers in India is only 58 percent, 42 percent of the population could be an occupation that keeps them part -time or complete time.
Stock market trade is a type of business activity, which has the potential to become a significant channel of income generation in the future. For example, once the merchant is familiar with the nuances of the stock market, it could become a sales personnel for large corridors, mutual funds, initial public offering, it could also participate in the education of others on the activity of the stock market, etc.
Three, more than 40 percent of these merchants are less than 30 years old and more than 70 percent have less than ₹ 5 Lakh as income. This suggests that unemployed young people are resorting to the trade of shares, probably in the period, before obtaining permanent work. This is not bad. The data also show that only 3.5 percent higher or loss manufacturers faced an average loss or ₹ 28 Lakh per person for the doors for fiscal year 22 to FY24. The losses of the majority may not be too large, given their limited capital.
Four, it is important that stock markets have more participants to impart depth and improve prices discovery. Individual investors currently represent approximately one third of the derived negotiation volume. But they form the largest cohort, since 99.8 percent of the total merchants in the segment of futures and options are individuals.
Five, India is a free country, and its citizens have the right to work in the sphere they choose. The trade of a regulated atmosphere, such as the stock market, is much better than the trade of platforms not regulated by cryptocurrencies, foreign exchange trade, online games, etc. since it is difficult to stop human prandensity to take stock.
Richest
It is also important to keep in mind that the increase in trade by people is enriching the government.
As the volumes of equity derivatives withdrew in the last three years, the collection of tax transactions has also increased. STT amounted to ₹ 55,000 million rupees in the estimation reviewed for fiscal year 2015, as a budgeted figure of ₹ 37,000 million rupees. In addition, the center expects STT to grow ₹ 78,000 million rupees in fiscal year 26, reinforcing its tax revenues.
Sebi’s data reveal that between fiscal year22 and fiscal year24, individual investors paid 50,000 million rupees as a transaction cost, or that, half, the stockbrokers were paid as a brokerage as a brokerage and ₹ 13.8 billion rupees to the Government as a tax on values transactions. The stock exchanges raised ₹ 10.200 million rupees such as their rate.
The exchanges of values such as the NSE also have leg beneficiaries of this increase in retail participation. More than 70 percent of the NSE turnover derives from the transaction charges collected from investors. Of this, the capital options segment contributes to 78 percent with the segments of cash and capital futures that represent the rest.
Given the limited participation of the general population in capital, Sebi could stop worrying about investors incurring losses in this segment. Could pass rites to become an experienced merchant in the stock market
Posted on May 15, 2025
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