FM Sitharaman cautions 'unchecked explosion' in retail F&O trading could create future challenges

Union Finance Minister Nirmala Sitharaman appealed to decision makers at NSE and BSE to work closely with market regulator SEBI to create a stringent regulatory standard. She was speaking at the "Vision for Indian Finance Markets" event at BSE in Mumbai.

Any unchecked explosion in retail trading of futures and options (F&O), she warned, could create future challenges not just for markets, but for investor sentiment and household finances.

"I would appeal to the BSE that you should work closely with Sebi in order to ensure stringent compliance and regulatory standard so that investor confidence grows further.," the Minister said.

Sitharaman also spoke about the active role that household finances and participation from middle class investors has been playing in protecting the market from fluctuations. Hence, she said that there is a need to protect the investors and their contributions. "Household finances have made a generational shift, we want to safeguard that, we want to ensure that it is not going to be shattered."