Now Reading: Sebi study shows retail F&O losses persist despite curbs
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Sebi study shows retail F&O losses persist despite curbs
A Sebi study on retail losses in equity derivatives shows that while the number of active individual traders fell by a fifth to 78.6 lakh in FY26 from 98.1 lakh the previous year, gross equity derivatives turnover fell only 5% to Rs 202.26 lakh crore. Options turnover grew 16%, while futures turnover shrank 20%, indicating speculative activity remained resilient. The average net loss per trader rose 2.4% to Rs 1.17 lakh.
The Hindu Business Line reports that industry participants are now calling for tighter eligibility and suitability norms for F&O trading, including income thresholds and investor qualification tests. Nearly 97% of retail activity was in contracts with less than a week to expiry, and 87.7% of individual traders ended FY26 with losses. Former Sebi whole-time member Ananth Narayan said the regulatory framework must evolve with the market.
Indian Opinion Analysis
Livemint's coverage sticks closely to the Sebi data, reporting the divergence between falling client counts and resilient options turnover without commentary on next steps. The Hindu Business Line leads with industry reaction, framing the same data as evidence that product-level curbs alone have failed, and that suitability tests are now needed. Both outlets report the same core numbers accurately. The difference lies in emphasis: Livemint treats the study as a standalone finding, while Business Line uses it to advance an ongoing regulatory debate. The next move will be Sebi's decision on whether to introduce income or qualification-based access filters.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), thehindubusinessline.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 2 sources.
