Over 70% intraday retail traders in cash segment lose money: Sebi

MUMBAI: A study carried out by the market watchdog Sebi has found that more than seven out of ten (71 percent to be precise) retail traders who engaged in intraday trading in the cash segment lost money in FY23.

The study also noted that there has been over a 300 percent surge in the number of retail investors participating in intraday trading in the equity cash segment in FY23 compared to FY19. One in three retail traders in the equity cash segment engages in intraday trades.

It can be noted that FY23 was one of the worst or muted for the market as a whole, with the Sensex returning just 0.72 per cent, following a high of 18.3 percent in the previous year and a whopping 68 percent the year before, and 24.85 percent in FY24.

In September last year, the regulator came out with another study on derivatives, which found that retail investors in the F&O space had lost heavily, to the tune of Rs 1.25 lakh annually.