SEBI curbs cool F&O participation by 20%, but traders still lose ₹91,685 crore
Active individual traders fall 20 per cent in FY26, first decline since FY16; average loss per trader rises 2.4 per cent
The Securities and Exchange Board of India (SEBI) has implemented measures to curb excessive speculation in equity derivatives, resulting in a 20% decrease in retail participation. Despite fewer traders, individual investors still faced a staggering net loss of ₹91,685 crore in FY26, with the average loss per trader increasing by 2.4%.
Out of the 78.6 lakh active individual traders in FY26, nearly nine out of ten continued to lose money, although the percentage of loss-makers decreased to 87.7% from 90.9%. The decline in aggregate losses was not matched by a proportionate drop in average losses, indicating that losses remained significant among the active traders.
Nearly 46 lakh traders who participated in FY25 did not trade in FY26, while new entrants decreased by about 40% to 20.8 lakh. SEBI's measures included restricting weekly derivative contracts, raising minimum contract sizes, and increasing extreme-loss margins for short options positions.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
