SEBI Reports Persistent Losses in Equity Derivatives for Individual Traders
A SEBI analysis reveals that nearly 91% of individual traders suffered losses in the Equity Derivatives Segment for the financial year 2024-25. Despite recent measures to strengthen the derivatives framework, the turnover and participation levels show mixed results, prompting concerns over investor protection and market stability.
- Country:
- India
An analysis by SEBI has uncovered that an overwhelming 91% of individual traders experienced net losses in the Equity Derivatives Segment (EDS) for the fiscal year 2024-25. This figure mirrors a similar trend observed in the previous year, raising concerns over the effectiveness of measures introduced to curb losses.
Following reports suggesting a reduction in investor losses, SEBI conducted a detailed study of trading activities from December 2024 to May 2025. The report comes after new regulations were implemented in October 2024 aimed at fortifying the equity index derivatives framework.
SEBI disclosed that while index options turnover has decreased by 9% in premium terms and 29% in notional terms year-on-year, there is a noticeable increase compared to two years ago. The financial watchdog will continue observing trends to safeguard investor protection and market stability amidst growing trading volumes in the EDS.
(With inputs from agencies.)
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