Regulators have so far not mandated any minimum net worth or investor qualifications for those trading stock options, and the stock markets almost always rise each year - both recipes for higher risk-taking and complacency.
The "stark" increase in daily options trading turnover raises issues of investor protection, said Ajay Tyagi, former SEBI chief.
The platform has seen an uptick in futures and options trading activity, Zerodha said in response to Reuters queries.
Siddharth Joshi, a 36-year old from Surat in western India, said he lost 200,000 rupees trading options on Adani Enterprises (ADEL.NS) shares in January.
"In options trading, I know my loss is capped but there is an opportunity to make maximum profit," he said.
Persons:
Francis Mascarenhas, Mihir Vora, SEBI, Ashish Chauhan, Ajay Tyagi, Kailash, Bhavesh Shah, Shah, Zerodha, Siddharth Joshi, he's, Ira Dugal, Vidya Ranganathan, Raju Gopalakrishnan
Organizations:
Bombay Stock Exchange, REUTERS, Rights, Securities, Exchange Board of India, Trust Mutual Fund, National Stock Exchange of India Ltd, BSE Ltd, Reuters, Axis Mutual Fund, National Stock Exchange, Adani Enterprises, Thomson
Locations:
Mumbai, India, Rights MUMBAI, South Korea, Bhavesh, Ahmedabad, Surat