Derivatives trading impacting household finances: FM

Derivatives trading impacting household finances: FM
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Mumbai: Union Finance Minister Nirmala Sitharaman on Tuesday warned that unchecked explosion in riskier future and options (F&O) trading by retail...

Mumbai: Union Finance Minister Nirmala Sitharaman on Tuesday warned that unchecked explosion in riskier future and options (F&O) trading by retail investors can create problems for household finances in the future.

“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,” she said at an event at the BSE here.

“Household finances have made a generational shift. We want to safeguard them,” she said. 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. Sitharaman also appealed to the BSE to work closely with markets regulator Sebi to help the investor confidence by stringent compliances and robust regulatory standards. The BSE and the NSE should mitigate systemic risk, ensure market stability, she added.

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