Mumbai: Leader of the Opposition and Congress leader Rahul Gandhi has sharply criticised the Securities and Exchange Board of India (SEBI) following a recent report indicating that small investors have lost a staggering ₹1.8 lakh crore in futures and options trading over the past three years. In his statement, Gandhi demanded transparency regarding the identities of the “big players” who profit from these losses.
Gandhi took to the social media platform ‘X’ to express his concerns, highlighting that futures and options trading has surged by 45 times in the last five years, largely unchecked. He noted that 90% of small investors have incurred significant losses during this period and called on SEBI to disclose the names of those who have benefited from the misfortunes of smaller traders.
This is not the first time Gandhi has targeted SEBI; he has previously raised questions about the regulator’s oversight and performance in light of various stock market trends. The Congress party has also been vocal in its criticism of SEBI chairperson Madhabi Puri Buch, particularly following the Hindenburg Research report, which raised issues of negligence and conflict of interest concerning the investigation into the Adani Group. Recently, SEBI declined to provide information regarding Buch’s declared assets in response to an RTI query, citing privacy concerns.
In its report released on Monday, SEBI revealed that a staggering 91% of traders—approximately 73 lakh individuals—lost money through futures and options trading in the financial year 2023-24. Each affected trader lost an average of ₹1.2 lakh, culminating in a total loss of ₹75,000 crore for small traders alone. Over the last three financial years, the cumulative losses from this trading segment reached ₹1.8 lakh crore.
In contrast, only 7.2% of traders saw profits from futures and options during the same period, with just 1% managing to earn over ₹1 lakh after accounting for market expenses.
Futures and options trading allows investors to buy and sell equities in the stock market, enabling potentially significant profits with minimal capital. However, this approach carries substantial risks. Investors place bets on the future price of a stock, speculating whether it will rise or fall. For example, if a stock is currently priced at ₹100 and an investor predicts it will reach ₹150 by December 2024, they could potentially make a profit if their prediction holds true. Conversely, if the stock does not meet their expectations, they will face losses.
As the debate around SEBI’s role and investor protection intensifies, many are calling for greater accountability and oversight in the futures and options market.
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