SEBI Underlines the Need for Analysis and Disclosure of Risks of Trading in F&O

On 25th January 2023, the Securities and Exchange Board of India (SEBI) issued a Press Release highlighting the need for analysis and disclosure of risks of trading in F&O. Under the supervision of a working group, SEBI has conducted a study analysing the trends in both participation and in profits and losses of individual traders in the equity F&O segment. The working group had representation from academia, clearing corporations, brokers, and market experts.

In the comparison of results in a contextual manner, prior to and after the pandemic, the study covers the periods of FY 2018-19 and FY 2021-22. The study is based on a sample of all individual clients of all the top-10 stock brokers, accounting for 67% of the overall individual client turnover in the equity F&O segment during FY 2021-22.