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Only 1 percent of specific investors took care of to make revenues surpassing Rs 1 lakh, after readjusting for purchase expenses, in F&O markets.
Over 75 percent of specific F&O investors in FY24 had actually proclaimed a yearly revenue of much less than Rs 5 lakh.
Over 9 out of 10 specific investors (93 percent) in the equity futures and choices (F&O) sector remain to sustain substantial losses. The accumulated losses of specific investors surpassed Rs 1.8 lakh crore over the three-year duration in between FY22 and FY24, according to the most recent evaluation performed by markets regulatory authority Sebi.
“Top 3.5 per cent of loss-makers, approximately 4 lakh traders, faced an average loss of Rs 28 lakh per person over the same period, inclusive of transaction costs,” according to the Sebi research.
Only 1 percent of specific investors took care of to make revenues surpassing 1 lakh, after readjusting for purchase expenses, it claimed.
Over 75 percent of specific F&O investors in FY24 had actually proclaimed a yearly revenue of much less than Rs 5 lakh, it claimed.
However, exclusive investors and international profile capitalists made revenues in the F&O sector.
“In contrast to individual traders, proprietary traders and foreign portfolio investors (FPIs) as a class booked gross trading profits of Rs 33,000 crore and Rs 28,000 crore, respectively, in FY24 (before accounting for transaction costs). Against this, Individuals and others incurred a loss of over Rs 61,000 crore in FY24 (before accounting for transaction costs),” Sebi included.
Most of the revenues were produced by bigger entities that made use of trading formulas, with 97% of FPI revenues and 96% of exclusive investor revenues originating from mathematical trading, it claimed.
On a standard, specific investors invested Rs 26,000 each on F&O purchase expenses in FY24.
“Over the three-year period from FY22 to FY24, individuals collectively spent about Rs 50,000 crore on transaction costs, with 51 per cent of these costs being brokerage fees and 20 per cent being exchange fees,” Sebi claimed.
