Rising F&O trade becomes macro issue now, household savings going into speculation: Sebi chief
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Sebi chairperson Madhabi Puri Buch on Friday said the capital markets regulator is "compelled" to warn against speculative bets in the futures and options (F&O) segment because it has become a "macro issue", affecting the broader economy now. Household financial savings are going into the speculative bets, belying the expectations of being used for capital formation and the youth is losing tonnes of money in such trades, Buch said. "...it has gone from being a micro issue of an investor to a macro issue of the economy itself. And therefore, we felt compelled," Buch said, speaking at a SBI MF event here. A research carried out by the regulator had found that investors lose in 9 out of 10 trades in the F&O segment. Starting from a level where it insisted on disclosing risks, Sebi has been proactively trying to dissuade investors from the segment lately. Buch said Sebi chose to change itself because of ...