If you are a retail participant in the derivatives market, you’ve probably had this experience:
You go to a social gathering, someone finds out you’re into the markets, and suddenly everyone wants to talk stocks.
They ask you,
“What do you think about the markets?”
“Is it safe to invest?”
But if you’ve been trading for a while, especially in derivatives, The game often feels rigged.
Every few weeks, there’s news about some new manipulation or scandal. After the the Co-Location Scandal, recently we’ve seen something even more frustrating—the Jane Street case. A global trading firm accused of manipulating prices through high-frequency trading. And now, they’ve been allowed back into Indian markets.
So what are retail traders supposed to think?
That the market is only for insiders?
That if you’re not a whale , you’re just target practice?
This double standard is what destroys trust.
If SEBI can’t convince the existing traders that the markets are fair, how will they ever convince new investors to trust the system with their savings?
It’s the retail traders of India who has to pass the message of confidence (or doubt) in the Capital Markets of India, during informal conversations at social gatherings, offices and family events.
Retail Derivative Market Participants are the real ambassadors of trust in India’s capital markets.
If their experience is one of manipulation, unfairness, and lack of regulatory protection, that’s the message that spreads. And no amount of government campaigns or exchange-sponsored advertisements can undo that.