Derivatives Trader Base Falls for First Time in Four Years in FY26: SEBI Study

SEBI curbs cool F&O participation by 20%, but traders still lose ₹91,685 crore

The Securities and Exchange Board of India’s (SEBI’s) measures to curb excessive speculation in equity derivatives have coincided with a sharp cooling in retail participation, with the number of active individual traders falling for the first time since FY16. But despite fewer traders, individual investors still incurred net losses of ₹91,685 crore in FY26, while the average loss per trader increased

Nearly 9 in 10 Individual Derivatives Traders Lost Money in FY26; Losses Hit Rs 91,685 Crore Despite Fall in Participation: SEBI

Get latest articles and stories on Business at LatestLY. The SEBI studies found that 87.7 per cent of individual traders incurred losses during FY26, while their aggregate net losses stood at around Rs 91,685 crore, compared with approximately Rs 1.12 lakh crore in FY25. Business News | Nearly 9 in 10 Individual Derivatives Traders Lost Money in FY26; Losses Hit Rs 91,685 Crore Despite Fall in Participation: SEBI.

Retail F&O losses ease, but frequent traders continue to bear the brunt

Individual traders’ losses fall to ₹91,685 crore, but average loss rose 2% as participation declined 18%.

Derivatives trader base falls for first time in four years in FY26: SEBI study

SEBI reports a 19% decline in derivatives traders in FY26, marking the first drop in four years, despite retail traders' dominance.

Rs 91,685 crore gone! 88% retail investors lost money in F&O trading in FY26 even after strict Sebi rules

Individual traders incurred substantial losses in India's equity derivatives market during FY26. Options trading accounted for the vast majority of these aggregate net losses. Active traders declined significantly, and new entrants also dropped considerably. Smaller investors with limited equity holdings experienced heavier losses than larger ones. The profit pool remained concentrated with institutional and professional traders.