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Mumbai: With shocking and astonishing statistics coming out in a SEBI study that many people are losing in futures and options (derivatives) trading and the young generation is getting ruined, now in the upcoming board meeting of SEBI on September 30, 2024, high net worth and institutional investors should stop trading in derivatives, there is likely to be significant changes in the cap margin requirement norms and net worth limits as well as some index derivative structures.
Khelo India Khelono Futures and Options Casino Changes are likely to be made at the meeting, forcing the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), which have in the past launched multiple futures with a few contracts expiring per day on a few days, to reduce the number of index derivative futures, sources said
The minimum contract value has also been increased from Rs 15 to Rs 20 lakh so that it becomes difficult for these investors, the young generation, to enter trading because small retail investors are being deprived of trading, after which this value will be increased to Rs 20 to 30 lakh in addition to the strike price but there is a possibility of change.
Finance Minister Nirmala Sitharaman and SEBI Chairperson Madhabi Puri Buch have repeatedly commented on the need for urgent action on the way futures and options (F&O) are traded, and the deadline for public comments on the matter at this board meeting is August 20. With SEBI taking strict measures to regulate F&O trading, change seems likely.
On July 30, SEBI proposed to introduce a single index-based weekly contract per stock exchange through a consultation paper. Hence, amendments related to this are also possible.
Apart from some important decisions taken at the SEBI board meeting, the changes are also likely to facilitate compliance with additional disclosure norms issued for foreign portfolio investors (FPIs) through a circular in August 2023. The 2023 circular asks entities with concentrated stakes in corporate groups or entities with high exposure to the Indian market to make detailed disclosures about their ownership, control or interest in certain FPIs.
The Sebi meeting is also likely to ease compliance norms related to education qualification and experience requirements for investment advisers and research analysts and do away with the net worth requirement and allow registration as both investment advisers and research analysts.
While the two major changes relevant to the mutual fund industry are the introduction of mutual fund lighter regulations for passively managed funds with less compliance requirements and the requirement to disclose risk adjusted returns in their documents. Also, a new asset class may be introduced between portfolio management services and mutual funds.
Surprising trend in F&O: Women traders suffer less losses than men
Many shocking things have come to light in a study by SEBI, including some interesting and surprising statistics recently, including the fact that the young generation is getting ruined in futures and options (F&O) trading. In which women traders have suffered an average loss of Rs 75,973 in the financial year 2024, while in comparison, male traders have suffered an average loss of Rs 88,804. In this way, women have been ahead in strategic approach by leaving men behind in F&O trading.
Another surprising aspect is the growing participation of women traders in the equity derivatives segment. In a surprising analysis, a SEBI survey revealed that women traders outperformed men in the F&O category.
Although the proportion of women traders participating in F&D has declined from 14.9 per cent in FY 2021-22 to 13.4 per cent in FY 2023-24, the SEBI survey showed that women traders have suffered less losses.
91.9 percent of F&M men incurred losses in FY24. While 86.3 percent of female traders incurred losses. Female traders incurred an average loss of Rs 75,973 in FY24, compared to Rs 88,804 for male traders.