सेबी चेयरपर्सन बोलीं- घर की सेविंग सट्टेबाजी में जा रही: बजट में F&O की कमाई पर 30% टैक्स की तैयारी, सरकार इसे स्पेकुलेटिव इनकम मानेगी

The number of individual traders has increased by more than 500% in FY 2022 as compared to FY 2019. 90% of active traders suffered an average loss of Rs 1.25 lakh during this period. This was said in the report published by SEBI on January 25, 2023 regarding profit and loss in F&O of individual traders.

‘Any uncontrolled explosion of retail trading in F&O could pose future challenges not just for markets, but also for investor sentiment and household finances. We want to safeguard and ensure this.’ Finance Minister, Nirmala Sitharaman said this at an event in May 2024.

Youth are losing lakhs of rupees in speculative trading
‘The capital market regulator is “forced” to warn against speculative bets in the F&O segment as it has become a macro issue of the economy rather than a micro issue of an investor. Household financial savings are going into speculation. Young people are losing lakhs of rupees in such trades.’ SEBI Chairperson Madhabi Puri Buch said this.

Nilesh Shah of Kotak Mutual Fund also said that F&O activity is affecting both micro and macro levels. Saving investors have become speculators. Micro issues are those problems which affect only you. Macro issues are those problems which affect everyone.

Increasing retail participation in F&O is not good
These statements and SEBI’s research report show that increasing retail participation in F&O is not good. In such a situation, the government can categorize F&O trading as ‘speculative’ income in Budget 2024. It can also be taxed at the rate of 30%.

High risk, high profit investments are speculation
Speculation is a financial term that relates to the purchase of an asset (commodity, good or real estate). This asset has a risk of losing value but is also expected to gain value in the near future. These are high risk, high profit investments that are made for a short period of time.

What are futures and options?
Futures and Options (F&O) are a type of financial instrument that allows an investor to take large positions in stocks, commodities, currencies with a small amount of capital. Futures and options are a type of derivative contract that has a fixed duration.

Within this time frame, their prices change according to the price of the stock. Futures and options of each stock are available in one lot size.