SEBI study: Proprietary traders outperform FPIs and MFs in FY26 derivatives
99% of the gross profit of FPIs and Proprietary traders came from algo trading
The Securities and Exchange Board of India (SEBI) has released a study indicating that proprietary traders outperformed foreign portfolio investors (FPIs) and mutual funds in derivatives trading during fiscal year 2026 (FY26). Proprietary traders recorded gross trading profits of ₹44,483 crore, a 3% decrease from the previous year, while FPIs saw their profits drop by 55% to ₹13,896 crore.
Corporate profits fell by 22%, mutual fund profits by 54%, and partnership firms and LLPs by 38%. Individual traders, however, experienced a net loss of ₹91,685 crore, a 26% decrease from the previous year. Despite the overall loss, individual traders' average profit per person increased by 22% to ₹1.22 lakh, while average losses increased by 11% to ₹1.47 lakh.
The study found that 99% of the gross profit for both FPIs and proprietary traders came from algorithmic entities, with the top 10 proprietary entities accounting for 74.5% of their category's gross profit.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
