Last Updated:July 08, 2025, 10:03 IST
A study by SEBI revealed 91% of individual traders in India’s equity derivative segment incurred net losses in FY2025, similar to FY2024.
Nearly 91% of individual traders incurred net loss in EDS in FY 2025(similar trend was observed in FY 2024)
SEBI Study On F&O Trading: A new study by the Indian market regulator, analysing the performance of individual traders in the equity derivative segment between December 2024 and May 2025, has revealed that 91 per cent incurred a net loss in EDS in FY2025. This followed the measures to tighten risks in equity derivatives by SEBI in a gradual manner starting from May 2024. It also marked a jump of 41 per cent from the previous study in FY2024.
However, the number of unique investors trading in EDS down by 20 per cent in FY2025 compared to the previous year. The study also highlights that India has continued to see relatively very high level of trading in EDS compared to other markets, particularly in index options.
Index options turnover, year on year, is down by 9% (in premium terms) and 29% (in notional terms). However, compared to 2 years ago, index options volume is up by 14% (in premium terms) and 42% (in notional terms).
Turnover of individuals in premium terms in EDS is down by 11% year on year and up by 36% over the similar period two years ago.
SEBI’s latest study measured the impact of its measures to strengthen risk metrics in derivatives last year. For the study, the trading activity in Equity Derivatives Segment (EDS) after these measures– both across all investors, and for individuals alone, has been analyzed (i.e. from December 2024 to May 2025).
The measures it has adopted in recent times in equity derivatives are:
1. Better monitoring and disclosure of derivatives risks
2. Reducing instances of spurious F&O ban periods in single stocks
3. Better oversight over the possibility of concentration or manipulation risk in index options
| Sr. no. | Measure | Effective From |
| i | Rationalization of Weekly Index derivatives products | 20-Nov-24 |
| ii | Increase in tail risk coverage on the day of options expiry | 20-Nov-24 |
| iii | Increased contract size for index derivatives* | 2-Jan-25 |
| iv | Rationalization of Monthly index derivative products** | Jan-25 |
| v | Upfront collection of Option Premium from buyers | 10-Feb-25 |
| vi | Removal of Calendar spread treatment on the Expiry Day | 10-Feb-25 |
| vii | Intraday monitoring of position limits*** | 1-Apr-25 |
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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