Despite record trading volumes in 2025-26, India’s retail participation in equity derivatives declined, with individual losses widening and regulatory measures introduced to curb risky speculation.
India’s equity derivatives market continued to draw huge volumes in 2025-26, but the number of individual traders taking part fell while average losses widened, according to data shared in the Rajya Sabha by Minister of State for Finance Pankaj Chaudhary. The figures, drawn from an analysis by the Securities and Exchange Board of India, show that the number of unique retail participants in futures and options slipped to 7.86 million from 9.81 million a year earlier, even as net losses for individuals eased only modestly to ₹91,685 crore from ₹1.11 trillion. Turnover in the segment also declined to ₹202 lakh crore from ₹213 lakh crore in the previous fiscal year.
Chaudhary said SEBI’s review covered the last five financial years and relied on data from the top 15 brokers in the equity derivatives market, a sample the ministry said represented about 90% of individual investors in the segment. He added that the regulator has rolled out disclosure and surveillance measures aimed at market stability and investor protection, including a warning that “9 out of 10 Individual traders made losses in F&O in FY22” displayed when users log on to trading platforms.
The latest figures extend a pattern identified in earlier SEBI studies. Business Standard reported last year that more than 93% of retail traders in futures and options lost money between FY22 and FY24, with average losses of about ₹2 lakh per trader. Financial Express likewise reported that SEBI found 93% of individual traders in the segment were in the red over the three-year period, reinforcing concerns about whether such products are suitable for many small investors.
The ministry also highlighted the growing tax take from the derivatives market. Securities transaction tax from futures and options rose to ₹27,695 crore in 2025-26 from ₹22,225 crore a year earlier, with ₹19,802 crore coming from options and ₹7,893 crore from futures. That rising revenue sits alongside the regulator’s push to curb risky retail speculation, a balance that continues to define India’s fast-growing but loss-heavy derivatives trade.
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