Stock market participants on Twitter said except Monday every other trading day is an expiry day, which will end up benefiting only stock exchanges and government National Stock Exchange (NSE) on Tuesday shifted the expiry day for the weekly Bank Nifty derivative contracts to Fridays from Thursdays with effect from July 7 and this didn't go well with stock market participants on Twitter.
“The first Friday expiry will be on July 14, 2023,” stated an NSE circular.
As per the new changes, all monthly contracts will expire on last Friday of the respective contract month. If Friday is a holiday, the expiry day will be the previous day. NSE said its decision was based on the feedback it received from the market participants.
Netizens said NSE, in its quest to counter BSE's recently launched weekly options contracts in the Sensex and Bankex contracts, has turned "stock markets into a casino" with every trading day, except Monday, being an expiry day.
Tuesday is Fin Nifty Expiry while Wednesday is NSE Midcap expiry, and from mid-July onwards Thursday will be Nifty 50 expiry and Friday will be Bank Nifty expiry. A few weeks ago, NSE had reduced Bank Nifty lot size to 15 from 25 in order to compete with BSE on that front as well.
One Twitter user said that in this 'casino' only exchanges and government stand to benefit because retail traders will lose more than gain.
As many as 89 per cent of the individual traders lost their money in the F&O segment in FY22; they witnessed an average loss of Rs 1.1 lakh during the year, according to market regulator Securities and Exchange Board of India.
While releasing a detailed study on the P&L of individual traders in the F&O segment, Sebi highlighted that the total number of unique individual traders who traded through the top 10 brokers in equity F&O segment jumped over 500 per cent to 45.2 lakh during FY22 as against 7.1 lakh during FY19.
“During FY22, 11 per cent of individual traders in equity F&O segment made a profit with an average profit of Rs 1.5 lakh. The percentage went down marginally to 10 per cent for active traders, though the average profit made by them went up to Rs 1.9 lakh during the same period,” Sebi said.
The market watcher further highlighted that 90 per cent of the active traders incurred average losses of Rs 1.25 lakh in FY22.