'Indian investors don’t need a coddling nanny, let them make mistakes and learn'

There is a difference between losses from deliberate malpractice and from market forces. The Indian government and regulators need to prevent the former, but allow the latter to happen, Deputy Editor TCA Sharad Raghavan argues in #StandardDeviation.

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[nachiket_daithankar]

Problem is, one big scam happens and journalists, economists, everyone under the sun will blame the regulators for not doing enough. People aren't smart as you think they are, Sharad😅

[Mryajurarora]

Unconvincing argument. If anything India needs more consumer protection regulations. Employee pension schemes are common among all developed market economies. Linking it to nationalisation of bank’s etc is pure misleading.

[shivrajrana]

@Print: this guys is good for some boring economic shows! But has consistently shown poor understanding of finance and financial markets! Hope to see more mature content from The Print on finance or financial markets!

[jaydeepgadhavi]

Nice analysis. I'm not sure about the extent to which it's necessary to contribute to EPFO but that's the only fund that extends to private sector employees unlike other pension schemes. It's important to note that just like EPF, if the employees chose to invest in mutual funds, then they aren't making all the investment decisions themselves. The fund managers are. Every formalized economy has such a saving structure in place. Other than the mandatory nature what's the difference between EPFO & US's 401k ? One final thing: the bigger the fund in valuation, the better are the chances to hire better fund managers.

[j]

Unwise and green of you, thankfully more mature prudent people are at the helm of affairs

[rajx]

I think SEBI should introduce a small exam or training course to be passed, before allowing trading accounts to be opened. Through this exam, they can be educated about good and bad. Much like sex education.

[rahulmore]

While I agree to some extent but this sound more of one sided rhetoric, for example epfo has done more good than harm for people so whats the problem

[vincentpinto]

Hmm, it paternalistic! But not mothering?

[Life.is.a.library]

This is a country with strong socialism, and no doubt chrony capitalists don't like it. Thumbnail of this video exactly represent the intentions of chrony capitalist, who need common people's hard earned money to get super rich.

Goverment knows the economic landscap of this country exactly. Authorities have all the data and they know that these new traders in the market are investing their only saving which they have, other than that they dont have much to absorb the losses, they are just motivated by recent profits and if something goes wrong it will be bad for the economy and even for security market for long run. Because once common man loose all its savings in share market then there is no way they gonna come back for a long period of time.

[stevesteve]

Crypto currency and Adani group are the exceptions

[rajasekhar]

No one is taking a parents role! They just want excuses to tax us more!

[Gyaan_paapi]

I am okay with the current EPFO status.

[j]

"Will be dissuaded by consistent loses" only after they have nothing more left kiddo. There pocket size is most probably not much that can act as cushion to absorb the loss as compared to the larger contracts one. Also it is so naive to say consecutive loss will make them more aware, rather after losing most of their savings (because of lack of know how) they will become more averse to options market.
Those who can afford the loss are allowed to do what they want, but those who cannot and risk running themselves and their family members life into choppy waters ultimately burdening Govt should be prevented from making mistakes simply because they can't afford mistakes.

[iloveriponst]

Well, while I agree with the thinking ; but of late I have found people who get their income through hard work, getting the whiff of option trading. I am talking about small time carpenters, electricians, beauticians, security guys and the likes. What will be a learning opportunity for the rich kid who gets 15- 20K pocket money from parents; can be financially ruinous for the guys I had mentioned.