Unchecked explosion in retail F&O trading may dent household finances, warns Nirmala Sitharaman
The Finance Minister called on NSE, BSE and Sebi to brainstorm together and chalk out robust compliances and regulatory standards to protect investors' interests. BSE and NSE were asked to mitigate systemic risk and ensure market stability. Sithraman said this in at a BSE event in Mumbai.
Indian finance minister Nirmala Sithraman on Tuesday warned of the perils associated with the stressing that "unchecked explosion" in the riskier futures & options (F&O) may potentially create problems in ."Any unchecked explosion in retail trading in F&O can create future challenges not just for the markets (but) for investor sentiment and also for household finances," the said and PTI reported.
"Household finances have made a generational shift. We want to safeguard them," she said while urging exchanges , and market regulator Securities and Exchange Board of India () to work together and come out with robust compliances and regulatory standards to safeguard .
The and the NSE should mitigate systemic risk, ensure , she added.
Sithraman said this in Mumbai at the BSE event 'Viksit Bharat 2047 - Vision for Indian Financial Markets'.
A study undertaken by Sebi has revealed that 9 of 10 retail investors suffer a loss on their bets in the futures and options market.
Last week, Sithraman in a tweet had said how public sector companies have benefited under the . The total market cap of all 81 listed () has grown 225% under the Modi government while 79% returns by CPSE have “significantly outpaced Nifty 500 and Nifty 50 indices,” she had said.
She was responding to what she called charges by the (INC) and its leader Rahul Gandhi that PSUs were being dismantled and were in disarray under the Modi regime.
"Repeated claims from the @INCIndia ecosystem and @RahulGandhi in particular that Public Sector Undertakings (PSUs) are being dismantled & are in disarray under the current government are a textbook example of 'Ulta Chor Kotwal Ko Daante,' as the facts reveal a very different picture," Sitharaman said on her official twitter handle.
According to her 62 CPSEs, 12 PSBs, 3 public sector insurance companies and IDBI Bank have seen their market capitalisations grow by 225% while NIFTY CPSE outperforming NIFTY 500 and NIFTY 50, which have given 27.4% and 22.5% returns, respectively.
According to her, the PSUs have suffered under the Congress-led UPA government and were previously neglected. She said companies such as Hindustan Aeronautics Limited (), have seen a resurgence under the Modi government.
In the last five years, HAL has delivered multibagger returns of a whopping 1,000%.
She claimed that PSUs are thriving and benefiting "significantly from the culture of professionalism infused in them along with increased operational freedom". Modi Govt's focus on capital expenditure has also led to substantial growth in their stock performance, her tweet said.
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Source: Stocks-Markets-Economic Times
