Dinesh Khara On F&O: Savers Should Consider Safer Bank Deposits

In response to Budget's recent regulatory changes aimed at steering retail investors away from the derivative market and amendments in short-term and long-term capital gains taxes, Dinesh Kumar Khara, Chairman of SBI, emphasized the importance of options available to savers for asset allocation. He noted that market behaviour on any given day may prompt some investors, wary of volatility, to temporarily favor bank deposits over riskier market instruments like futures and options. Khara acknowledged the complexity of derivatives, cautioning that without adequate understanding, it's advisable for individuals to refrain from venturing into them. Highlighting SEBI's efforts to ensure market participants are well-informed before engaging in derivatives, Khara indicated a potential positive impact on bank deposits as investors opt for safer avenues. Despite fluctuations in market conditions affecting short-term and long-term capital gains, Khara underscored the enduring principle of balancing risk and reward in investment decisions. He anticipated opportunities for banks to attract deposits while facilitating the flow of funds into market instruments through the banking system.