Now Reading: Sebi study shows retail F&O losses at Rs 72,000 crore in FY26
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Sebi study shows retail F&O losses at Rs 72,000 crore in FY26
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: 2 sources, 2 neutral
Sources (2): timesofindia.indiatimes.com (neutral report), livemint.com (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
