'Household Finances Have Made Generational Shift, Want To Safeguard Them', Says Sitharaman

Sitharaman called upon the exchange to collaborate closely with market regulator SEBI in bolstering investor confidence through stringent compliance measures and robust regulatory frameworks

Union Finance Minister Nirmala Sitharaman on Tuesday issued a cautionary statement regarding the burgeoning trend of riskier future and options trading among retail investors, highlighting the potential hazards it poses to household finances. She said, "An unbridled surge in retail trading in F&O could spell future challenges not only for market dynamics but also for investor sentiment and, crucially, household financial stability."

Pointing out a significant finding from a SEBI study which indicates that 9 out of 10 retail investors incur losses in futures and options trading, Sitharaman underscored the importance of protecting household finances, noting a generational shift in financial practices.

In her address at an event hosted by the BSE, Sitharaman called upon the exchange to collaborate closely with market regulator SEBI in bolstering investor confidence through stringent compliance measures and robust regulatory frameworks.

Additionally, the finance minister urged both the BSE and the NSE to actively mitigate systemic risks and uphold market stability as part of their responsibilities.

Two weeks ago, Sitharaman underscored key imperatives crucial for India's GDP growth during her address.

Speaking at GITAM University's Vizag Campus for the Viksit Bharat Ambassador Campus Dialogue programme, the minister said the target set by the Prime Minister for India to achieve developed status by 2047. She stressed the need for concerted efforts to drive GDP growth and ensure its inclusive benefits.

Highlighting that GDP expansion requires proactive measures at both micro and macro levels, Sitharaman highlighted the importance of enhancing the country's image and GDP rankings. She pointed out the significance of per capita income calculations and highlighted that unless GDP broadens, meeting economic demands would be challenging.

She articulated the necessity for investment, fostering service sector growth, strengthening educational institutions, and facilitating access to finances for housing and entrepreneurial endeavours.