SEBI’s Madhabi Puri Buch Warns Household Saving Being Ploughed Into Speculative Activities

In a recent event organized by SBI Mutual Fund, SEBI Chairperson Madhabi Puri Buch expressed significant concerns about the booming futures and options (F&O) trading segment. This issue has escalated from being a micro-level concern, focused on investor risk, to a macro-level concern, potentially disrupting economic growth. Buch highlighted the unexpected surge in F&O trading volumes and the associated losses, particularly among young investors. She emphasized that this growth was unanticipated and has now reached a scale where protecting individual investors has evolved into a broader concern about the market's purpose. At a macro level, SEBI is worried that household savings are being diverted from capital formation to speculative activities. Buch assured that SEBI's actions will always be guided by data, stating, "Data and no dogma." She emphasized SEBI's flexibility in adapting its views based on changing data. Buch's remarks come after a recent SEBI Board meeting, underscoring the regulator's growing apprehensions about the systemic risks posed by the skyrocketing F&O volumes. Stay tuned for more updates on this critical issue impacting the financial markets.