NSE CEO Ashish Chauhan warns retail investors against derivatives trading 
Economy / वित्त और द्रव्य

NSE CEO Ashish Chauhan warns retail investors against derivatives trading

NSE chief Ashish Chauhan also advised investors not to believe market tips and discussions on social media platforms.

JJ News Desk

National Stock Exchange (NSE) CEO and Managing Director Ashish Chauhan has advised retail investors to stay away from derivatives trading, highlighting the complexities involved.

“If you don’t understand the instrument, don’t touch it. Especially for retail investors, derivatives are not the place to be,” Chauhan said at the Business Today MindRush 2025 event.

He also cautioned against relying on market tips and discussions on social media platforms. “Treat pop circuits, messages, or WhatsApp discussions as entertainment, not investment advice,” he added.

Chauhan's comments on derivatives trading come months after a report indicated how retail investors have been losing money in Futures and Options (F&O) trading.

In response, the Securities and Exchange Board of India (Sebi) introduced several measures to safeguard investors. According to Chauhan, these measures have already started yielding results.

However, he pointed out that only a small fraction of retail investors trade in derivatives.

“Out of 11 crore investors, only around 25-30 lakh trade in derivatives once a month—just about 2% of the total investor base. Among them, 88% also invest in equities, which means they may be making money in stocks even if they incur losses in derivatives,” he explained.

On global uncertainties and US reciprocal tariffs, Chauhan noted that markets have already factored in the tariffs set to take effect from April 2. While markets typically price in known risks, he cautioned that unforeseen consequences tend to disrupt sentiment.

Discussing the IPO market outlook for 2025, Chauhan said that while IPO activity has slowed in the last six months due to weaker market conditions, the pipeline remains strong.

“The markets have been good over the last 2–3 years, and when markets do well, volumes increase and more IPOs come in. There is enough momentum in the IPO space, and several companies are waiting for the right time to launch,” he said.

Source: India Today

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