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Amid a weak session on Dalal Street, shares of BSE Ltd saw strong action on Friday, November 7. The stock gained more than 4 per cent to hit Rs 2,560 during trade after Finance Minister Nirmala Sitharaman’s comments on the futures and options (F&O) segment lifted sentiment in capital market counters.

Speaking at an event, the Finance Minister said the government has no plans to restrict retail investors from trading in derivatives. However, she stressed that more effort will go into educating investors about the risks involved in F&O products. Sitharaman said investors should understand the nature of these instruments before participating, adding that awareness is the best safeguard against losses.

According to Zee Business, the minister has also sought suggestions on how to handle the surge in retail trading volumes in the F&O space, which has grown sharply in recent years.

The statement came soon after SEBI’s latest data revealed that 91 per cent of individual F&O traders ended FY25 with net losses, amounting to over Rs 1 lakh crore in total. The report highlighted that such losses could otherwise have contributed to responsible investments and long-term capital formation.

To address rising speculation, the market regulator had earlier introduced tighter norms around position limits and margin requirements. Futures contracts bind buyers and sellers to execute trades at a pre-decided price and date, while options offer a right — but not an obligation — to buy or sell within a certain timeframe.

These instruments, widely used for hedging, speculation, and arbitrage, carry high risk and demand a clear understanding of the market.

Meanwhile, the BSE stock has been one of the best performers on the exchanges. It has gained nearly 14 per cent in one month, 20 per cent in six months, and about 61 per cent over the past year. In the last three years, the stock has surged over 1,150 per cent, while in five years, investors have earned massive returns of around 4,400 per cent.

At present, BSE shares hold a 52-week high of Rs 3,030 and a low of Rs 1,227.32.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff