Sebi to introduce more safeguards for F&O as traders' losses mount

Regulator's study on F&O segment shows over 90% traders incurred losses in FY22, with the average hit over 15x the earnings of the 10% who made profits

The Securities and Exchange Board of India (Sebi) on Wednesday said plans to impose additional safeguards for retail investors dealing in the futures and options (F&O) segment.

The move follows a study by the regulator which showed widespread losses by individual investors.

In the financial year 2021-22, about 90 per cent of the active traders incurred losses, at an average of Rs 125,000. Furthermore, the average net loss of these 90 per cent individuals was over 15 times the earnings of the 10 per cent who made profit.

The report depicts the disparity amongst the F&O traders as the top