India's individual equity derivatives traders fall about 20% in fiscal 2026, regulator says
BENGALURU: Individual traders in India’s equity derivatives declined about 20% in fiscal year 2026, the country’s markets regulator said on Thursday. The Securities and Exchange Board of India said individuals in the segment suffered aggregate losses totalling 2.03 trillion rupees ($21.21 billion) during the last two financial years. The pace of exits accelerated in fiscal 2026, with 4.6 million…
Individual equity derivatives traders in India saw a significant decline of around 20% in fiscal year 2026, according to the country's markets regulator, the Securities and Exchange Board of India (SEBI). In a report released on Thursday, SEBI stated that these traders suffered aggregate losses amounting to 2.03 trillion rupees ($21.21 billion) over the last two financial years.
The rate of traders exiting the segment accelerated in fiscal 2026, with 4.6 million individuals who had participated in equity derivatives during fiscal 2025 not returning in the subsequent year. This marked a stark contrast to the 2.6 million exits recorded in fiscal 2025. The regulator attributed this sharp increase in exits to the heightened pace of losses.
In response to the situation, SEBI has introduced several measures since November 2024 aimed at curbing excessive speculation in the market. These include raising contract sizes for index derivatives, reducing the frequency of weekly index expiries, and mandating upfront collection of option premiums. Notably, the exit rate in fiscal 2026 rose to 43%, a sharp increase from 27% the previous year, as reported by SEBI.
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