Intraday traders aged below 30 yrs has grown by 48 per cent in 22-23: SEBI study

A SEBI study has found that young intraday traders aged below 30 years has grown to 48 per cent in 202223 an official statement said on WednesdayThe objective of the Securities and Exchange Board of India SEBI study was to analyse trading by individuals in intraday cash segment during the study period FY19 FY22 and FY23The study has been peer reviewed by a working group with representation from academia brokers and market expertsIt includes examining trends in participation by the individual traders annual profit and loss incurred by them and analysing trading patterns of small and large traders on the basis of their turnover trade size and number of tradesThe periods of study have been selected to comparatively analyse the trends before and after Covid19 outbreakThe study also found that more than 7037 7 out of 10 of individual intraday traders in equity cash segment have incurred losses in the FY 202223Read the entire study and its findings hereSome of the major findings of the SEBI study were Around one 1 in three 3 individuals who trade in equity cash segment trades intraday Number of individual traders who traded intraday in equity cash segment rose over 30037 in FY 202223 as compared to FY 201819 Share of young intraday traders age less than 30 years has grown to 4837 in FY 202223 as compared to 1837 in FY 201819 7 out of 10 individual intraday traders 7137 in equity cash segment incurred net loss in FY 202223 Proportion of lossmakers increased to 8037 for traders with very frequent more than 500 trades in a year trading activity The percentage of lossmakers among younger traders whose age was less than 30 years was higher 7637 in FY 202223 as compared to other age groups Average number of trades by lossmakers was higher than the profitmakers Over and above the trading losses incurred loss makers expended an additional 5737 of their trading losses as trading costs in FY 202223 Profit makers spent 1937 of their trading profits as trading costs in FY 202223 The study is expected to enhance awareness among individual traders about the risks involved in intraday trading in equity cash segmentIt has also noted a surge of three times or over 30037 in the number of individuals participating in intraday trading in equity cash segment in FY 202223 compared to FY 201819The statement said that the study covers the periods of FY 201819 FY 202122 and FY 202223 in order to comparatively analyse the trends before and after the pandemic The study is based on a sample of individual clients of the top10 stock brokers accounting for around 8637 of the individual client count in the equity cash segment during FY 202223The study is different and distinct from the report dated January 25 2023 on FampO trading conducted by SEBI earlier the official statement said