Nearly 91% Of Retail Investors Incur Net Loss In Equity Derivatives In FY25: SEBI

Mumbai: The Securities and Exchange Board of India (SEBI) on Monday said that analysis of profit and loss of individual traders in Equity Derivatives Segment (EDS) suggests that at aggregate level, nearly 91 per cent of individual traders incurred net loss in EDS in FY 2025 (similar trend was observed in FY2024). 

The comparative study of growth in trading in Equity Derivatives Segment (EDS) vis-a-vis Cash Market after recent measures showed that Index options turnover, year on year, is down by 9% (in premium terms) and 29 per cent (in notional terms).

“However, compared to 2 years ago, index options volume is up by 14 per cent (in premium terms) and 42 per cent (in notional terms),” the SEBI study said, adding that turnover of individuals in premium terms in EDS is down by 11 per cent year on year and up by 36 per cent over similar period two years ago.

According to the regulator, the number of unique individual investors trading in EDS is down by 20 per cent compared to previous year and up by 24 per cent from 2 years ago.

“India continues to see relatively very high level of trading in EDS, compared to other markets, particularly in index options,” the study noted. SEBI said that trends in turnover of index options will continue to be observed from the perspective of ensuring investor protection and market stability.

In order to ensure that the rapid growth in derivatives market matches with commensurate risk monitoring metrics, SEBI has introduced certain measures, which are better monitoring and disclosure of risks in derivatives, reducing instances of spurious ban periods for derivatives on single stocks and better oversight over the possibility of concentration or manipulation risk in index options.

In order to present the factual impact of these measures, the trading activity of both investors individual investors for the period from December 2024 to May 2025 was analysed by the regulator.