Over 9 out of 10 particular buyers (93 p.c) within the fairness futures and selections (F&O) sector stay to maintain substantial losses. The accrued losses of particular buyers surpassed Rs 1.8 lakh crore over the three-year period in between FY22 and FY24, in line with the latest analysis carried out 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,” in line with the Sebi analysis.
Only 1 p.c of particular buyers took care of to make revenues surpassing 1 lakh, after readjusting for buy bills, it claimed.
Over 75 p.c of particular F&O buyers in FY24 had truly proclaimed a yearly income of a lot lower than Rs 5 lakh, it claimed.
However, unique buyers and worldwide profile capitalists made revenues within 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 had been produced by greater entities that made use of buying and selling formulation, with 97% of FPI revenues and 96% of unique investor revenues originating from mathematical buying and selling, it claimed.
On a regular, particular buyers invested Rs 26,000 every on F&O buy bills 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.
