Now Reading: Retail traders stuck with options despite Sebi curbs, study shows
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Retail traders stuck with options despite Sebi curbs, study shows
Retail traders have not abandoned equity derivatives despite Sebi's tightening, with a new study showing trading activity concentrated among higher-turnover participants. The regulator's analysis of top brokers found active individual clients fell…
Retail traders have not abandoned equity derivatives despite Sebi's tightening, with a new study showing trading activity concentrated among higher-turnover participants. The regulator's analysis of top brokers found active individual clients fell 20% to 78.6 lakh in FY26, but gross turnover in futures and options dropped only 5% to Rs 202.26 lakh crore.
Options turnover grew 16% while futures fell 20%, as speculative activity proved resilient. The average net loss per trader rose 2.4% to Rs 1.17 lakh. Sebi measures included tripling contract sizes, limiting weekly expiries to one per exchange, and doubling margins on expiry day. The government also raised securities transaction tax in October 2024 and again in the FY27 Budget.
Indian Opinion Analysis
Sebi's data reveals a structural shift: retail traders who remain are chasing higher-risk options rather than the directional exposure of futures. The regulator's core aim was to cool aggregate volumes and curb losses, yet average loss per active trader actually rose 2.4%. Options remain the dominant product despite a tripled contract size, a doubled extreme loss margin on expiry, and a higher securities transaction tax. Sebi's rule allowing only one weekly contract per exchange appears to have reshuffled participation rather than reduced it. The government's decision to raise STT again in the FY27 Budget signals that further curbs may follow if speculative volumes stay elevated. The next data point to watch is the FY27 numbers, which will show whether the FY26 trend is a plateau or a precursor to deeper regulatory action.
Source: livemint.com
This story was synthesised by AI from the source linked above.
