SEBI’s Study Reveals 91% Individual Traders Suffered Loss In Equity Derivatives In 2024-25
A similar trend was observed in 2023-2024
By: : Anjali Verma
Update: 2025-07-08 02:00 GMT
SEBI’s Study Reveals 91% Individual Traders Suffered Loss In Equity Derivatives In 2024-25
A similar trend was observed in 2023-2024
The Securities and Exchange Board of India’s (SEBI’s) analysis of profit and loss has revealed that 91 per cent of individual traders incurred net loss in the Equity Derivatives Segment (EDS) at the aggregate level, in the financial year 2024-2025.
The survey was carried out after media reports claimed that investor losses reduced after 1 October 2024, when SEBI introduced measures to strengthen the EDS framework.
However, SEBI reassured, "The trends in turnover of index options will continue to be observed from the perspective of ensuring investor protection and market stability."
The markets regulator analysed the trading activity of all investors, including individual investors, from December 2024 to May 2025. This was done to see the impact of measures to strengthen the EDS structure.
The SEBI claimed that yearly, the index options turnover has been dwindling by 9 per cent (in premium terms) and 29 per cent (in notional terms). However, comparatively, the volume increased by 14 per cent (in premium terms) and 42 per cent (in notional terms) from two years ago.
The turnover of individuals in premium terms in EDS has been decreasing by 11 per cent every year and increased by 36 per cent. Likewise, the number of unique individual investors trading in EDS was down by 20 per cent compared to the previous year and rose 24 per cent from two years ago.
The regulator maintained, "India continues to see a relatively very high level of trading in EDS, compared to other markets, particularly in index options.”
The financial year-wise trend for six-years (2019-2020 to 2024-2025), along with an analysis of the profit and loss of individual traders in EDS, was covered in SEBI’s survey.
To ensure that the rapid growth in the derivatives market matched with the commensurate risk monitoring metrics, in May 2025, SEBI introduced certain measures with key objectives: better monitoring and disclosure of risks in derivatives, and reducing instances of spurious ban periods for derivatives on single stocks.