Explosive Growth in Derivatives Trading: SEBI's Late Wake-Up Call

In this video, Debashis Basu analyses SEBI Chairperson Madhabi Puri Buch's recent concerns about the surge in derivatives trading volumes, particularly stock options, and why these concerns may be both late and misdirected. He explores the explosive growth in speculative trading, the role of retail investors and the implications for the economy.
Learn about the history of derivatives in India, the balance between speculation and hedging, and potential regulatory actions SEBI could take. Join us for a comprehensive look at this critical issue in the Indian financial markets.
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[@srinivasvaranasi1645]

That is an important reiteration - Secondary market is a necessary evil and the reasons for it.

[@shankarmohan87]

Here is an example of two horses pulling a carriage in opposite directions... 2 govt. entities SEBI & Exchanges SEBI: Speculation is too much in market, we have to safeguard the retail folk (unless your last name is Adani, in which case SEBI will first try to save you). How? we'll do some dumb shit like ---> give disclaimer statement everytime you log in to broker terminal or do even dumber shit like---> tax F&O on par with IPL betting, online rummy & poker, crypto etc etc... why? because 9/10 traders lose money...and the 1/10 guy who makes money, we'll tax the fk outta him making sure that all 10/10 traders lose money so only govt. & broker make money... MEANWHILE Excanges: why have only month end expiry? lets do weekly expiry... why have expiry ONLY on Thursdays? lets have expiry EVERYDAY!!! Infact, lets make up more indicies and have MORE THAN ONE EXPIRY EVERY FUCKING DAY!!! BHELCOME TO YEENDIA!!!

[@rahul98003]

Berojgar spotted

[@shankarmohan87]

@@rahul98003 mummy's brest feeding adult spotted....

[@kishorekumarmv3607]

introduction weekly expiry and then greedy daily expiry - what to expect .

[@Spread_only_love]

Insightful observation. There’s definitely something wrong in the market now 🤔

[@MoneylifeNewsBites]

Thank You .I'm glad you found the information helpful.

[@anandvaidya67]

"We are very concerned, but we will do nothing and stand and watch the disaster unfold" Indian gov agencies and governments.

[@sureshlalwani410]

Thank you Sir

[@MoneylifeNewsBites]

You're welcome! Please subscribe to our channel for more such content.

[@vidyanandbapat8032]

If the government is unable to create enough employment so that noone remains unemployed, then why discourage Derivatives trading? Infact Zero Dated Options should be introduced which are already prevalent in US markets. Just like huge volume in option contracts having weekly expiry, daily expiry options contracts will be more beneficial for poor option buyers like us.

[@infact5376]

Will restrictions cause crash?

[@user-se4ri5md1x]

I think Govt keen on boosting option trade even further as substantial tax revenues flows in through options on daily basis

[@pramodkrishnamurthy3707]

Hmm i kinda see your point Shuboda Are you into derivatives? Are you profitable? If one gets the strategies right, it's hugely profitable In my experience, Indian financial regulators wake up late and overreact Let's see if that pattern repeats😅

[@harsharip]

Derivatives never led to long term growth or any profits

[@pramodkrishnamurthy3707]

Galat fahmi bhai

[@tsrlife3818]

​@@harsharip that's true on macroeconomic level, but the story is entirely different on individual levels. Most people lose, some people accumulate.

[@sabyasachimallick4964]

Thanks you for speaking on points . But don't worry I called IT as Natural Justice or Nature's Justice . As you called it in last , COVID Time ; all the Fully paid government employee , middle corporate employees , government aided school , college teachers, invested money & time on market . And make money . And now lure of money is finishing them . Selim langde pe mat ro . ( Please investigate and tell who are those 84 % option trader , newer one or older .)

[@varvariyavejanand6603]

Every year they introduce a new index in the derivatives market that why operation turnaround increased

[@ndacadet1]

How do u discover price without speculation ?

[@harsharip]

Ever heard of option pricing models ?

[@vivekshivdasani9521]

Capital formation is for the birds. The primary function of the market is price discovery and serving the needs of the buyer and sellers. ICICI BANK is up to it’s neck in encouraging f&o trading. The bank is eager to lend me 33 times my bank balance to enable me to jump onto the derivatives bandwagon. Everyday a bank salesman rings me asking if I would like to borrow funds for trading. This is the same institution where Mrs M.P. Buch spent most of her illustrious career. First she kills and eats a hundred rats and then she goes to Mecca for the Haj pilgrimage. Let her vent her ire on these giant financial institutions rather then blaming poor retail investors like me.

[@siddhantmisal4115]

ONE SINGLE DAY OF INDEX EXPIRY INSTREAD OF DAILY EXPIRY CAN SOLVE LOT OF ISSUES , AND ALSO MILLENIUM VS JANE STREET CONFLICT REGARDING TRADING STRATEGY IN OPTIONS MARKET OF INDIA IS ALSO IMPORTAT POINT

[@tsrlife3818]

The jenie is out of the bottle already.