# Sebi study shows retail F&O losses at Rs 72,000 crore in FY26

2026-08-21T01:21:32+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 2 independent outlets

A Sebi study on F&O trading for FY26 reveals that proprietary traders made a gross profit of about Rs 44,000 crore, while individual traders lost Rs 72,000 crore. Foreign funds, corporates, mutual funds, and partnership firms also recorded profits. The Times of India reports that 99% of profits for foreign funds and prop traders came through algo entities. Livemint highlights that 89% of traders under 30 lost money, and three-fourths of individual derivatives traders earn less than Rs 5 lakh annually. Aggregate net losses for individual traders fell to Rs 91,685 crore from Rs 1.12 lakh crore in FY25, but the average loss per trader rose to Rs 1.17 lakh. Options trading drove 92% of aggregate losses. The study noted a 20% decline in active individual traders, to 78.6 lakh, and a 40% drop in new entrants. Nearly 88% of individual traders continued to incur losses. Retail activity remained concentrated in very short-duration options, with 59% of turnover on expiry day.

## Indian Opinion Analysis

Both sources report the same Sebi study neutrally, with no significant stance difference. Times of India leads with the headline profit-loss disparity between big players and retail, while Livemint emphasises the demographic breakdown, especially young and low-income traders. The consistent finding is that despite a decline in aggregate retail losses, the proportion of loss-makers remains high at 88%, and the average loss per trader increased. The measured takeaway is that regulatory measures have not yet reversed the structural imbalance in the F&O market. Watch for Sebi's next steps on curbing near-expiry options trading, which drove 92% of retail losses.

## Coverage

Coverage: 2 sources, 2 neutral
- timesofindia.indiatimes.com (neutral report) <https://timesofindia.indiatimes.com/business/india-business/in-fo-space-big-boys-profit-at-retails-expense-sebi-study/articleshow/133390369.cms>
  Leads with institutional profit vs retail loss numbers, straight factual reporting
- livemint.com (neutral report) <https://www.livemint.com/money/personal-finance/fo-losses-hit-young-traders-hardest-89-of-investors-under-30-lost-money-in-fy26-most-were-from-low-income-groups-11787281485315.html>
  Focuses on age and income demographics of losing traders, no editorial slant

This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources. Last updated 2026-08-21T09:58:20+00:00.

Tags: algo trading, F&O trading, proprietary traders, retail traders, SEBI
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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/