Why retail investors should diversify their portfolio and limit risky bets

The restrictions that Sebi plans to bring in are meant to curb such leveraged trading

The Securities and Exchange Board of India (Sebi) may soon impose limits on the trading positions that retail investors can take, based on their net worth. Retail investors will have to obtain a net worth certificate from a chartered accountant and submit it to their broker, and their trading limits will be decided accordingly.

Net worth is the sum total of all the financial and non-financial assets of an individual, minus his liabilities. Retail investors often do margin trading in the equity market, which means that they borrow money from their broker to trade in stocks. They also take leveraged