NSE Warns Investors on High-Risk Derivatives
By Rediff Money Desk, NEWDELHI Dec 29, 2023 17:00
NSE chief Ashishkumar Chauhan advises investors to avoid high-risk derivatives and frequent trading, emphasizing long-term investments for wealth creation. He also urges investors to deal with registered intermediaries.
New Delhi, Dec 29 (PTI) The National Stock Exchange (NSE) chief Ashishkumar Chauhan on Friday cautioned investors against high-risk derivatives or frequent trading in the stock market.
"Avoid the pitfalls of high-risk derivatives or frequent trading in the stock market. Be a committed participant in India's growth story, and pave the way for a brighter future. Long term investments usually yield better results based on past experiences," the exchange's MD and CEO Chauhan said in a message to investors.
At the same time, he asked investors to deal only with registered intermediaries and never invest in unregulated products.
"Investment through the stock market is meant for long-term wealth creation. An unpleasant experience can dishearten even the most resilient investors, making it crucial to tread with caution if you are new to the stock market or not an expert," he added.
Last month, Sebi chairperson Madhabi Puri Buch stated that she was 'confused and surprised' at investor interest in Futures and Options (F&O) despite 90 per cent of individuals losing money in the segment.
She pointed to a recent research by the capital markets regulator which pointed out that only 11 per cent of the 45.24 lakh individual traders in the F&O segment made profit.
As per the research, there was an exponential increase in the F&O segment participation during the pandemic, with the total number of unique individual traders increasing by over 500 per cent from the 7.1 lakh in FY19.
"Avoid the pitfalls of high-risk derivatives or frequent trading in the stock market. Be a committed participant in India's growth story, and pave the way for a brighter future. Long term investments usually yield better results based on past experiences," the exchange's MD and CEO Chauhan said in a message to investors.
At the same time, he asked investors to deal only with registered intermediaries and never invest in unregulated products.
"Investment through the stock market is meant for long-term wealth creation. An unpleasant experience can dishearten even the most resilient investors, making it crucial to tread with caution if you are new to the stock market or not an expert," he added.
Last month, Sebi chairperson Madhabi Puri Buch stated that she was 'confused and surprised' at investor interest in Futures and Options (F&O) despite 90 per cent of individuals losing money in the segment.
She pointed to a recent research by the capital markets regulator which pointed out that only 11 per cent of the 45.24 lakh individual traders in the F&O segment made profit.
As per the research, there was an exponential increase in the F&O segment participation during the pandemic, with the total number of unique individual traders increasing by over 500 per cent from the 7.1 lakh in FY19.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- ARC Finance
- 1.51 (+ 2.72)
- 99106131
- Vodafone Idea L
- 8.27 (+ 1.72)
- 37910491
- Guj. Toolroom Lt
- 18.98 (+ 4.98)
- 33052379
- Srestha Finvest
- 0.81 ( -2.41)
- 24087791
- Filatex Fashions
- 0.69 ( -4.17)
- 20455844
MORE NEWS
OYO Bans Unmarried Couples Check-in in Meerut
OYO has introduced a new check-in policy for partner hotels in Meerut, prohibiting...
Indian Tech Firms Dominate US H1B Visas:...
Indian-origin tech companies like Infosys and TCS received a fifth of all US H1B visas...
OfBusiness to Invest Rs 3k Cr in Steel Biz...
OfBusiness, a b2b commerce and fintech startup, plans to invest Rs 3,000 crore to...