Retail investors in India’s equity derivatives segment suffered staggering losses exceeding ₹1.06 lakh crore in FY25, according to SEBI’s latest study — a 41% jump from the ₹74,812 crore lost in FY24. The study signals early signs of cooling in the retail frenzy around futures & options (F&O) trading after regulatory curbs, but the scale and frequency of losses remain alarming.
The average loss per retail trader rose to ₹1.1 lakh in FY25, compared to ₹86,728 a year earlier. While the number of unique retail traders in F&O fell 20% year-on-year, it remains 24% higher than two years ago, underscoring the enduring allure of derivatives despite mounting losses.
Retail turnover in premium terms dropped 11% YoY, though it’s still up 36% compared to FY23. Index options — which dominate F&O activity — saw a 9% drop in premium turnover and a 29% decline in notional turnover versus last year. Yet, compared to two years ago, index options volumes are up 14% in premium terms and 42% in notional value.
SEBI noted that 91% of individual F&O traders incurred net losses in FY25, calling out persistent structural risks in the segment. Over the last four fiscal years, retail traders have lost nearly ₹2.87 lakh crore in derivatives trading:
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FY22: ₹40,824 crore
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FY23: ₹65,747 crore
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FY24: ₹74,812 crore
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FY25: ₹1,05,603 crore
The regulator reiterated its commitment to monitoring index options turnover and ensuring investor protection and market stability amid uneven financial literacy and weak risk management among retail participants.
The findings come as SEBI intensifies efforts to temper retail participation in high-risk derivatives and educate investors on the perils of speculative trading.
