Asset management companies (AMCs) want to participate more aggressively in the futures and options (F&O), as they believe they are in a better position to counter high-frequency traders (HFT), mostly dominated by foreign institutional investors, said sources close to the development.
In a recent meeting with senior officials of the Securities and Exchange Board of India (SEBI), fund houses made a strong pitch for the same, adding that the main reason behind individual investors losing big money in the F&O market is that they are pitted against institutional HFTs. “Retail investors are in no position to take on big foreign institutions. No wonder, over 90% of them lose money,” said one of the sources.
