Share Market Update: How much loss did people incur in F&O of the stock market?
Share Market Loss: SEBI's study found that the top 3.5 percent loss-making individuals, or around four lakh traders, suffered an average loss of Rs 28 lakh per person during the same period, including transaction costs.
Stock Market F&O: If you also invest money in the Future and Option (F&O) segment of the stock market, then this news is of use to you. In the Future and Option segment, 91 percent i.e. 73 lakh traders have suffered losses during the last financial year 2023-24. These traders have suffered an average loss of Rs 1.2 lakh per person. This information was given in a study released by SEBI. Apart from this, out of more than one crore traders associated with Future and Option, 93 percent have suffered an average loss of about two lakh rupees (including transaction costs) per trader during three years i.e. from 2021-22 to 2023-24.
Total loss to businessmen is Rs 75000 crore
During this period, the total loss of such traders was more than Rs 1.8 lakh crore. In the financial year 2023-24 itself, traders suffered a total loss of about Rs 75,000 crore. SEBI's study found that the top 3.5 percent of loss-making traders, about four lakh traders, suffered an average loss of Rs 28 lakh per person during the same period including transaction costs. On the other hand, only 7.2 percent of individual traders made profits in a period of three years and only one percent of individual traders managed to earn a profit of more than one lakh rupees after adjusting for transaction costs.
Traders doubled in two years
Apart from this, the number of retail traders has almost doubled in two years to about 96 lakh in the financial year 2023-24, from about 51 lakh in 2021-22. However, such investors contributed about 30 percent of the total business in the financial year 2023-24. SEBI said, 'The availability of good business platforms and low transaction costs have helped retail traders to actively trade in the futures and options segment. This increased liquidity in the market.'
A large part of retail traders is incurring losses
SEBI said that the rapid increase in activities in the F&O segment has pointed out the need for investor education and risk management activities, as a large part of retail traders are incurring losses in the market. Earlier, SEBI had published a report in January 2023. It found that 89 per cent of individual traders in the equity futures and options segment lost their money in the financial year 2021-22. With the increasing participation of individual investors in the stock and equity futures and options markets, SEBI has conducted this study.
FPIs and financial institutions made profits
Its purpose was to assess the profit and loss situation of individual traders in the futures and options segment during the financial years 2021-22 and 2023-24. Also, to analyze the profit and loss situation in the futures and options segment for all categories of investors during 2023-24. According to the report, while individuals suffered losses in the futures and options segment, foreign portfolio investors (FPIs) and financial institutions made profits.
Financial units earned a gross profit of about Rs 33,000 crore in the futures and options segment in the financial year 2023-24. It was followed by FPIs which earned a gross profit of about Rs 28,000 crore. In contrast, individuals and others suffered a loss of more than Rs 61,000 crore in the financial year 2023-24. The participation of young traders in terms of population increased to 43 percent in the financial year 2023-24, which was 31 percent in the previous financial year. Of these, about 93 percent of young traders suffered losses in the futures and options segment in the financial year 2023-24.