Sebi Study Reveals Alarming Losses for Individual Traders in Equity Derivatives
A Sebi study reports that 91% of individual traders faced losses in the equity derivatives segment in FY25, widening by 41% from FY24. The number of unique traders dropped by 20% over the year. Sebi introduced measures to boost market stability and investor protection amid fluctuating turnover trends.
- Country:
- India
In a startling revelation, nearly 91% of individual traders experienced losses in the equity derivatives segment during the fiscal year 2025, according to a recent study by market regulator Sebi. This marks an alarming increase in net losses, which widened by 41% from the previous fiscal year.
The study highlighted a downward trend in the number of unique individual investors trading in futures and options, which decreased by 20% compared to last year. Meanwhile, index options turnover saw a 9% decline in premium terms and a 29% reduction in notional terms year-on-year.
In response to these concerning trends, Sebi implemented measures to enhance risk monitoring and disclosure in the derivatives market, aiming to prevent spurious ban periods for single stock derivatives and ensure better market oversight.
(With inputs from agencies.)
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