Now Reading: SEBI study: Derivatives trader base falls 19% in FY26, losses still high
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SEBI study: Derivatives trader base falls 19% in FY26, losses still high
SEBI study: Derivatives trader base falls 19% in FY26, losses still high
The number of individual traders in the equity derivatives market fell by 19% to 78.6 lakh in FY26 from 98.1 lakh in FY25, the first year-on-year decline since FY16, according to a…
The number of individual traders in the equity derivatives market fell by 19% to 78.6 lakh in FY26 from 98.1 lakh in FY25, the first year-on-year decline since FY16, according to a SEBI study released on August 20, 2026. The Hindu reports that SEBI cautioned the decline cannot be attributed solely to its regulatory measures, as participation had begun moderating earlier. Aggregate net losses fell 18% to Rs 91,685 crore, but the average loss per loss-making trader rose to Rs 1.16 lakh, the highest since FY22.
The Hindu Businessline notes that nearly 46 lakh traders from the FY25 cohort did not trade in FY26, while new entrants fell 40%. Despite fewer participants, nine out of 10 individual traders still lost money, with options accounting for 92% of aggregate losses. The decline followed SEBI measures from November 2024 including restricting weekly expiries, raising minimum contract value to Rs 15-20 lakh, and increasing extreme loss margins. However, the report found that traders who remained active increased their trading intensity, with average turnover per options trader rising 10.8% between Q2 and Q4 FY25.
Indian Opinion Analysis
Both sources report the same core numbers, but differ in framing. The Hindu leads with SEBI's own caution against attributing the decline entirely to its curbs, emphasising that losses remain high and experience does not reduce risk. The Hindu Businessline leads with the 'cooling' effect of SEBI measures, explicitly linking the 20% participation drop to the regulator's actions. The critical frame would note that the Hindu gives more weight to the regulator's nuance, while Businessline gives more weight to the policy impact. The neutral takeaway: participation fell sharply, but losses per active trader worsened, suggesting the remaining traders are taking bigger risks. Watch for whether SEBI introduces further measures if loss trends persist.
Coverage: 2 sources, 2 neutral
Sources (2): thehindu.com (neutral report), thehindubusinessline.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
