# SEBI study shows 89% young F&O traders lost money in FY26 2026-08-23T20:35:59+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets (3 source reports) More than 89% of derivatives traders under 30 incurred losses in FY26, a SEBI study found. The regulator's analysis shows the equity derivatives market has become younger: traders under 30 now account for 43% of individual participants, up from 31% four years ago. About three-fourths of all individual derivatives traders had annual income below Rs 5 lakh, and 88% of this group lost money. Overall, the number of active individual derivatives traders fell 18% to 87.5 lakh in FY26, from 1.06 crore in FY25. New entrants dropped 39% to 2.08 million, while exits surged more than tenfold to 4.57 million. Repeat traders now make up 76% of the base, up from 41% in FY22. SEBI cautioned the findings show correlation, not causation. The regulator phased in stricter contract size and expiry rules between November 2024 and April 2025. ## Indian Opinion Analysis All three sources report the same SEBI study with neutral-report framing. The Hindu Business Line emphasises losses among young and low-income traders, the global comparison article contextualises Indian losses within international patterns, and Livemint focuses on regulatory impact (tighter rules, trader exits). None adopts a critical or pro-government stance, all present data plainly. The uniform coverage suggests SEBI's study is treated as authoritative. The measurable outcome: the derivatives trader base contracted 18% to 87.5 lakh, with exits surging to 45.7 lakh. Readers should note the new-entrant collapse as a structural shift, potentially making the market more dominated by repeat (likely experienced) traders. ## Coverage Coverage: 3 sources, 3 neutral - thehindubusinessline.com (neutral report) Leads with losses among young and low-income traders, emphasising SEBI warning against causation - thehindubusinessline.com (2) (neutral report) Frames Indian losses as part of global pattern, citing studies from Brazil to Europe - livemint.com (neutral report) Leads with regulatory impact: tighter rules reduced new entrants and increased exits This story was synthesised by AI from the 3 sources linked above. Updated: this story now draws on 3 sources. Last updated 2026-08-24T09:32:40+00:00. Tags: Equity Derivatives, options trading, retail investors, SEBI Canonical: https://indianopinion.org/sebi-study-89-of-young-derivatives-traders-incur-losses/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/sebi-study-89-of-young-derivatives-traders-incur-losses/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/