SEBI's Analysis of Profit and Loss of Individual Traders in F&O

[matt4]

@rickyrajesh Whats the point of this? Just to show day trading in futures is risky for retail? They could have just shown any of the dozens or hundreds of studies done worldwide. Its well known that trading is profitable only if you are a market maker with a knack of building strategies to suit market conditions.

Moreover the study is full of un-actionable statistics that serve no other purpose than be a useless statistic.

For instance, in page 28 they show traders from Kolkata have higher average profit than traders from Mumbai...hmm, ok. But what can be done with this statistic? They do all kind of profit and loss distribution between tier 1, tier 2 and tier 3 cities.

This kinda work is expected from university undergrads, not from a regulator lol

Why would a regulator waste time on such an effort, when the reputation of Indian markets is literally sinking?

This is from a yesterday's article: https://www.bloomberg.com/opinion/a...rg-saga-puts-investor-trust-in-india-in-doubt

To borrow a phrase from development scholar Lant Pritchett, the Securities and Exchange Board of India ensures perfect isomorphic mimicry. Regulated entities tick much the same boxes they would in a developed market. As in the West, a growing number of these requirements deal with corporate governance. But scratch the surface of disclosures and unsavory characters show up: “briefcase investors,” masquerading as Mauritius-domiciled funds, available to any company boss who wants a little buzz in their stock.

The Indian regulator is busy chasing technical yardsticks, such as beating the US on the speed of the local market’s settlement cycle. But exchange of assets is only partly about efficiency. Above all, it’s about trust, and exemplary punishment — like in the case of Enron Corp. and Bernie Madoff — for those who break it. Is SEBI waiting for a public outcry to go in and clean up the market?

As an investor, you still cant trust the balance sheets and books of a huge number of listed companies. Meanwhile the regulator is amusing themselves by coming up with nerdy statistics that befit an undergrad finance graduate rather than the main securities regulator of the country

 

[seventimesseven]

@matt4 Bravo

 

[skyvongolaprimo]

@rickyrajesh

Even those making net trading profits incurred between 15% to 50% of such profits as transaction cost.

Youngest age group (

 

[jiagry014]

@rickyrajesh Adani Faces One of Worst Billionaire Wipeouts With Empire Under Siege , what's the future for Adani stocks?