Net losses by individual traders in the equity derivatives market rose 41 per cent on year in FY25, but the measures taken by SEBI towards the end of 2024 to curb hyperactivity by retail traders in derivatives seem to have paid off with their numbers dropping by a fifth sequentially in the March quarter.
Towards the end of November 2024, the regulator implemented several measures such as limiting weekly expiries, higher lot sizes and upfront collection of premiums. These measures led to a reduction in losses of individual traders, both at aggregate as well as per person level, in the fourth quarter compared to a rise in the first three quarters of FY25.
A SEBI study gauging the effect of these measures showed that while the percentage of individual investors making losses remained unchanged at 91 per cent on year in FY25, net losses by individual investors after transaction costs widened to ₹105,603 crore from ₹74,812 crore in FY24.
The number of unique individual traders declined from around 61.4 lakhs in the first quarter to around 42.7 lakhs in the fourth quarter. The study includes 13 brokers’ combined client base of 96 lakh traders and around 107 lakh traders across the derivatives market.
In the six months from December 2024 to May 2025, the index options turnover is down by 9 per cent in premium terms and 29 per cent in notional terms over the same period last year. The turnover of individuals in premium terms in the futures and options (F&O) market is also down by 11 per cent year-on-year, but up by 36 per cent over a similar period two years ago.
The report comes a few days after the regulator passed an interim order against global trading firm Jane Street for allegedly engaging in non-neutral trading to influence expiry prices of Bank Nifty in its favour. SEBI has temporarily banned the US-based firm and ordered impounding ₹4,844 crore in illegal gains made in the past two years.
Published on July 7, 2025