A recent post on X has once again ignited the debate on the risks faced by retail investors engaging in derivatives trading. The post showed a video of an Uber driver who apparently lost Rs 2.5 lakh in options trading while earning only Rs 25,000 per month. In the video, the driver candidly detailed his financial ordeal. “I incurred a loss of Rs 2.5 lakh in 2024, all through options trading. I had held stocks and they didn’t result in any loss. The entire loss came from options,” he explained in Hindi. The man, however, admitted that he had not followed trading guidelines properly.
When asked if the loss equaled his annual income, he simply said, “Yes.” The driver further vowed to never engage in options trading again unless he “has a good capital to invest”. The video has shed light on the need for stronger investor education and more transparent market practices.
SEBI’s regulatory changes
Further into the video, the driver welcomed recent regulatory changes by the Securities and Exchange Board of India (SEBI), especially the shift from weekly to monthly fund settlements for inactive accounts. “This is a good rule by SEBI; now there’s less chance of fraud,” he said. The man in the video further expressed concerns about high brokerage fees charged.
The post further commended SEBI’s decisive action against global trading firm Jane Street, which allegedly engaged in market manipulation, leading to the seizure of Rs 4,840 crore.
SEBI’s monthly settlement rule
The SEBI law that changed from a weekly to a monthly requirement relates to the settlement of funds in inactive trading accounts. Previously, Trading Members (TMs) were required to settle the funds of clients who had been inactive for over 30 days within three working days, effectively making it a weekly or near-daily operational requirement.
SEBI revised this norm in January 2025: now, such funds must be settled on the upcoming settlement dates of the monthly running account settlement cycle as notified by the stock exchanges.
The driver’s remarks refer to SEBI’s recent amendment changing the settlement cycle from weekly to monthly for certain trading activities, easing operational burdens on investors and brokers alike. This regulatory shift aims to make trading more accessible and less cumbersome for the common man, reducing frequent settlement pressures and enhancing transparency.