“On average, loss makers registered net trading losses close to ₹50,000 in FY22. The average absolute net loss of a loss maker was over 15 times the net profit made by a profit maker,” Sebi said.
The total number of unique individual traders who traded through a sample of top 10 brokers in the equity F&O segment was 45.2 lakh during FY22, up from 7.1 lakh during FY19, a significant increase of six times in FY22 as compared to FY19, the regulator said.
“Sebi believes that periodic data analysis and disclosure of this nature can significantly enhance investor awareness around market risks,” the regulator said.
“With this in mind, Sebi will shortly issue guidelines in respect of additional risk disclosures required to be made by brokers and exchanges to investors,” it said.
The number of individual traders in index options and stock options went up by nearly eight and five times, respectively, in the last three years.
“Among all the unique individual traders who traded in the equity F&O segment, 98% traded in options while 11% traded in futures during FY22 as compared to 89% and 43%, respectively, during FY19,” Sebi said.The regulator said, over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Even those making net trading profits, incurred between 15% and 50% of such profits as transaction cost, Sebi said.