Derivatives trader base falls for first time in four years in FY26: SEBI study
A SEBI study reveals that individual participation in India's derivatives market dropped by 19% in fiscal 2026, marking the first decline in four years. While aggregate losses decreased, the average loss per individual trader rose to a record high of ₹1.16 lakh.
Why it matters
The data highlights the effectiveness and limitations of recent regulatory interventions aimed at curbing retail financial risk in high-volatility markets.
The number of individual traders participating in the derivatives market fell 19% to 78.6 lakh in fiscal 2026 from 98.1 lakh a year earlier, according to data released by the Securities and Exchange Board of India (SEBI) on Thursday.
SEBI’s two studies on the profitability and trading behaviour of individual derivatives traders, released on August 20, showed that both participation and aggregate losses declined in FY26. However, the average loss per trader increased, highlighting the continued risks faced by those remaining active in the market.
The decline in participation followed a series of measures introduced by SEBI to curb retail losses in derivatives. These included limiting weekly expiries to one index per exchange, raising the minimum contract value to ₹15 lakh-₹20 lakh and increasing the extreme loss margin for expiry-day trading by 2%.
However, SEBI cautioned against attributing the decline entirely to the regulatory measures.
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