Should retail investors participate in the equity derivatives market?
There is no evidence that a large number of Indians are losing money in equity derivatives trading
Last week, this paper carried two starkly different views on the role of retail investors. One view, based on a study of the investment behaviour of about 12 million retail investor accounts in the Indian stock market, was that they appear to learn better investment habits over time and should be left alone by policymakers. The other article said the collective behaviour of retail investors in the equity derivatives markets has been overly speculative and policymakers should intervene to bring about a balance.