IPO Flipping, Riskable Trade and Risk Stock: Risk Indian game is playing

Encouraged by social media surveys and behaviors such as deficiency and retail retail offer.

According to India security and exchange of India ₹1.8 Lakh Crore. Average trader received ₹5 lakh per year, but suffer with the average loss ₹2 lakh.

Many of this turmouts were around an IPO flipping. Many young investors today apply the iPos is not for long-term growth, but to leave the increase in the item. SEBI information shows that 50% of the IPO shares that are sold within one week of registration. During the 80 IPos listed during the year 2024 and March 2025, 57th down the average profit, while the only loss for abstracts.

This behavior also reflects Cleanliness ResultInvestors where to run to IPOs with benefits when continuing to hold on the registered.

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In particular, almost half devate devate accounts in the IPOSO during the first time 2021-23, a new investor, the most likely to lack appropriate financial education.

Interesting things, subscription levels in non-institutional investors (NII) from 38 times during the investors.

Where did the money come from?

The form of the anticipation of this investment makes the question click: Young investor, many of the risks have, supporting such risky behavior?

Some marketing observers believe that personal loans believe in personal companies – especially non-bank financial companies that are playing an important role. According to the Compassion of the Fintech for Consumer’s strength (face), NBFCs punished almost 14 crore ₹9 Lakh Crore in FY24.

While the Bank offers personal loans at a rate below 11%, NBFCs charged up to 45%. Why did the investor turn to NBFCs?

The answer is in access. Many borrowers missing a good credit score, do not respond to strict banking criteria, or blocked by the longer bank approval procedure. NBFCs, there are strict lending and less, became desired option especially for borrower under financial stress.

Bombs Time Ticking

Easy access to this easy credit is to create harmful circuits: Loan to invest, money, money again to recover. Without a solid repayment strategy, many young traders fall into the spiral debt.

The Indian Financial Security Reporting Bank (FSR) confirms these concerns. While the bank sector is not displayed by the Bank (NPA) declined on September 12, and the NPA.

The report also has two digits growing in lending by NBFCs, which is risky, risk management.

Also read: Can make a risky risk and rewards

Things to change

There is an urgent need to tighten NBFC rules, especially around inactive lending. Loan approval must be linked to risk risk and event. There is a better understanding where these loans are being used – especially if being asked for trade with trade.

At the same time, improving financial knowledge and raise perception of behavior traps is important. Push the investment in charge, instead of predictable trading, can help to protect both private finance and extensive financing systems.

Unfortunately, this loan behavior creates a cruel cycle, leading to trap high interest while loan has been high. Young traders can face debt installed without a proper repayment plan.

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Abhishek dadhwal is the PGP student at IIM Raipur, Rasmeet Kohli is a AGM senior agm at IIM Raipur.

The opinion expressed is the author and does not need to reflect the perspective of their institution.