SEBI must name 'big players' profiteering at expense of small traders in F&O trading: Rahul

Rahul Gandhi demands naming of big players profiteering as SEBI study reveals 91% of individual F&O traders lost money

Congress leader Rahul Gandhi on Tuesday (September 24, 2024) said 90% of small investors have lost ₹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%, or 73 lakh, individual traders lost money in the F&O segment in FY24 with an average net loss of ₹1.2 lakh per person, a study conducted by markets regulator Securities and Exchange Board of India (SEBI) revealed on Monday (September 23, 2024).

Further, 93% of over 1 crore individual F&O traders incurred average losses of about ₹2 lakh per trader (inclusive of transaction costs) during the three years from FY22 to FY24. The aggregate losses of such traders exceeded ₹1.8 lakh crore during the period.

Mr. 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 ₹75,000 crore in net losses.

It found the top 3.5% of loss-makers — about 4 lakh traders — faced an average loss of ₹28 lakh per person over the same period, inclusive of transaction costs.

On the other hand, only 7.2% of individual F&O traders made a profit over the period of three years and only 1% of individual traders managed to earn profits exceeding Rs 1 lakh, after adjusting for transaction costs.