SEBI curbs retail F&O losses by 18 pc in FY26: Govt
New Delhi, Aug 11
The Securities and Exchange Board of India's regulatory measures helped to reduce aggregate retail investor losses in the equity derivatives segment by 18 per cent to Rs 91,685 crore in FY26, Parliament was informed on Tuesday.
In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said SEBI observed a decline in the number of unique individual investors participating in the equity derivatives segment as well as a reduction in trading activity following regulatory interventions introduced from November 2024.
In FY25, net losses of the individuals stood at Rs 1,11,788 crore, according to him.
The number of unique retail investors in the futures and options (F&O) segment fell around 20 per cent to 78.6 lakh in FY26 from 98.1 lakh in FY25, according to the minister.
"Following the regulatory measures, SEBI has observed a year-on-year decline in the number of unique individual investors from 98.10 lakh to 78.60 lakh and net losses of the individuals from Rs 1,11,788 crore to Rs 91,685 crore in the equity derivatives segment in 2025-26, compared to the previous year," he said.
Despite the decline in aggregate losses, the average loss per investor rose to Rs 1,16,654 from Rs 1,13,913 a year earlier.
Overall turnover in equity derivatives also moderated and decreased to Rs 202 lakh crore in FY26 from Rs 213 lakh crore in FY25, according to the minister.
The market regulator's measures included rationalisation of weekly and monthly index derivatives products, higher contract sizes for index derivatives, increased tail-risk coverage on options expiry days, upfront collection of option premiums from buyers, removal of calendar spread treatment on expiry days and intraday monitoring of position limits.
In May 2025, the market regulator introduced additional measures to streamline expiry days across exchanges and strengthen risk monitoring and disclosure in the F&O segment.
Meanwhile, collections from the securities transaction tax (STT) on F&O trades surged to Rs 27,695 crore from Rs 7,893 crore a year earlier, Chaudhary said.
— IANS
Reader Comments
Good to see that fewer people are gambling in F&O now. But the STT collection jumping from Rs 7,893 crore to Rs 27,695 crore? That's 3.5x more tax money from traders! The government is making more money than ever while people are still losing. Something doesn't add up. 🤔
As someone who works in the markets, I think these measures were necessary. The earlier F&O rules were like a casino - weekly expiries and low contract sizes were trapping retail investors. Higher contract sizes will naturally filter out those who don't understand the risks. Better late than never!
But wait - average loss per investor has actually increased! From Rs 1.13 lakh to Rs 1.16 lakh. So the people who are still trading are losing more? Maybe SEBI should look at why retail investors are still so attracted to F&O. Is it easy money mentality or something else? 🧐
I'm an NRI working in finance in the US, and I've been following Indian markets closely. These regulatory changes are actually quite progressive compared to what other emerging markets do. The 20% drop in retail participation is concerning, but it's better than letting people lose their savings.
My brother-in-law was one of those who lost almost Rs 2 lakh in F&O last year. He finally stopped after SEBI's new rules made it harder and costlier. Honestly, these regulations are a blessing in disguise for families like ours. The government should also focus on financial literacy programs! 🙏
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