SEBI must name 'big players' profiteering at expense of small traders in F&O trading: Rahul Gandhi
New Delhi, Sep 24: Congress leader Rahul Gandhi on Tuesday said 90 per cent of small investors have lost Rs 1.8 lakh crore in Futures and Option (F&O) trading in three years and asked the SEBI to reveal the names of the "so called big players" profiteering at their expense.
More than 91 per cent, or 73 lakh, individual traders lost money in the F&O segment in FY24 with an average net loss of Rs 1.2 lakh per person, a study conducted by markets regulator Securities and Exchange Board of India (SEBI) revealed on Monday.
Further, 93 per cent of over 1 crore individual F&O traders incurred average losses of about Rs 2 lakh per trader (inclusive of transaction costs) during the three years from FY22 to FY24. The aggregate losses of such traders exceeded Rs 1.8 lakh crore during the period.
Gandhi, who is the leader of the Opposition in the Lok Sabha, said on X, "Uncontrolled F&O trading has grown 45X in 5 years. 90% of small investors have lost ₹1.8 lakh Cr in 3 years."
"SEBI must reveal the names of the so called 'Big Players' making a killing at their expense," the former Congress chief said.
The study said in FY24 alone, individuals incurred about Rs 75,000 crore in net losses.
It found the top 3.5 per cent of loss-makers -- about 4 lakh traders -- faced an average loss of Rs 28 lakh per person over the same period, inclusive of transaction costs.
On the other hand, only 7.2 per cent of individual F&O traders made a profit over the period of three years and only 1 per cent of individual traders managed to earn profits exceeding Rs 1 lakh, after adjusting for transaction costs.
Moreover, the number of retail traders, or individual traders, has almost doubled in two years to about 96 lakh in FY24 from about 51 lakh in FY22.
Although such investors contributed about 30 per cent to the total turnover in FY24, they are a clear majority in number terms, as 99.8 per cent of total traders in the equity F&O segment are individuals.
"The availability of sophisticated trading platforms and lower transaction costs have enabled retail investors to actively trade in options and futures contracts, contributing to the surge in market liquidity," SEBI said.
The regulator said rapid growth in F&O trading activity has highlighted the need for investor education and risk management practices, as a significant proportion of retail traders continued to incur losses in the market.
Uncontrolled F&O trading has grown 45x in 5 years.
— Rahul Gandhi (@RahulGandhi) September 24, 2024
90% of small investors have lost ₹1.8 lakh Cr in 3 years.
SEBI must reveal the names of the so called “Big Players“ making a killing at their expense.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Centre moves SC for withdrawing CRPF security to Unnao rape survivor, SC seeks her reply
New Delhi, Sep 24: The Supreme Court on Tuesday sought responses from the 2017 Unnao rape survivor and her family members on the Centre's plea seeking withdrawal of CRPF security cover provided to them following the court's order in 2019. Expelled BJP leader Kuldeep Singh Sengar is serving a life term for kidnapping and raping the minor girl in Uttar Pradesh's Unnao area in 2017.
Taking note of the sensational rape case and the threat to lives of the survivor and others, the apex court on August 1, 2019, directed that the rape survivor, her mother, other members of the family and their lawyer be provided CRPF security.
A bench of Justices Bela M Trivedi and Satish Chandra Sharma asked that the application of the Centre to be served on the victim and her family members. The bench also observed that since there is hardly any threat perception, it would like to close the case.
The Centre's counsel said no security cover is needed according to the threat analysis of the victim and her family members.
Advocate Ruchira Goel, appearing for the Uttar Pradesh government, submitted that everything, including the trial, was transferred to Delhi after the incident following the apex court's order.
The bench asked Goel where the victim resides at present. She replied that the woman and her family stay in Delhi.
On May 14, the top court had asked the Centre to file a separate application seeking withdrawal of CRPF security cover provided to the survivor, her family members and their lawyers.
The Centre submitted that the security cover may be provided by either the Delhi or Uttar Pradesh police and the CRPF be permitted to withdraw.
In 2019, the top court transferred all five cases registered in connection with the Unnao rape incident from a Lucknow court to a court in Delhi with the direction to hold trial on daily basis and complete it within 45 days.
The Supreme Court also directed the Uttar Pradesh government to provide Rs 25 lakh as interim compensation to the rape survivor.
The court had added that the CBI will have to complete within seven days the investigation into the accident in which the survivor and her lawyer were critically injured and two of her aunts killed.
Her father was arrested at the behest of Sengar in a case under the Arms Act and died in custody on April 9, 2018.
Sengar has sought the quashing of the trial court's December 2019 judgment that has sentenced him to imprisonment for the remainder of his life. His appeal is pending in the Delhi High Court.
On March 13, 2020, Sengar was sentenced to 10 years of rigorous imprisonment in the case of death of the woman's father in custody. He was also slapped with a fine of Rs 10 lakh. The court had awarded a 10-year jail term to Sengar's brother Atul Singh Sengar and five others in the case.
