Indian Traders Face Losses in Equity Derivatives, SEBI Study Reveals
A recent SEBI study shows that individual traders in India faced significant losses in the equity derivatives segment, with net losses widening in FY2025. The study also highlighted a decline in the number of unique individual investors trading in futures and options.
Indian Traders Facing Losses in Equity Derivatives
Nearly 91% of individual traders in India incurred losses in the equity derivatives segment in fiscal year 2025, according to a study released by SEBI. The net losses of individual traders increased by 41% to ₹1,05,603 crore in FY25 from ₹74,812 crore in FY24. The study also noted a decline in the number of unique individual investors trading in the derivatives market.
SEBI's Analysis and Measures
SEBI conducted this analysis to evaluate trading activity in the equity derivatives segment, especially after introducing measures to strengthen the framework. The study covered all investors and focused on individual traders from December 2024 to May 2025.
The analysis revealed that a significant percentage of individual traders faced net losses in the equity derivatives segment, indicating a trend seen in previous years. Despite fluctuations, India continues to witness high levels of trading in derivatives, particularly in index options.
SEBI's Initiatives for Market Stability
To ensure that the rapid growth in the derivatives market aligns with risk monitoring metrics, SEBI introduced measures aimed at enhancing risk monitoring and disclosure in the market. These measures also aim to reduce instances of manipulation risks and ensure better oversight to prevent concentration risks.