Lokesh Machines reports a rise in standalone net profit to ₹10m in Q1, amid warnings from SEBI on the high risks faced by retail traders in derivatives markets, where most incur losses and pay heavy costs.
Lokesh Machines said its standalone net profit for the first quarter rose to ₹10m from ₹4m a year earlier, according to the company’s update. The manufacturer’s latest disclosure came alongside an extensive investor warning on derivatives trading, underlining the risks for retail participants in futures and options.
India’s markets regulator, SEBI, has repeatedly cautioned that derivatives can involve market, credit, liquidity and operational risks, and has said 9 out of 10 individual traders in the equity futures and options segment have posted net losses. A SEBI study cited in investor material also found that losing traders suffered average net losses of about ₹50,000 and paid another 28% of those losses in transaction costs, while profitable traders gave up 15% to 50% of gains in charges.
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