91% of individual traders lost money in equity derivatives in FY25: SEBI study

Nearly 91% of individual traders in equity derivatives incurred net losses in the financial year 2024-25, according to a study released by markets regulator SEBI on Monday.

The findings, based on trading activity between December 2024 and May 2025 across both stock exchanges, showed a continuation of trends observed in the previous fiscal.

The study indicated that the net losses of individual traders widened by 41% to ₹1,05,603 crore in FY25 from ₹74,812 crore in FY24.

“Analysis of profit and loss of individual traders in EDS (Equity Derivatives Segment) suggests that at aggregate level, nearly 91% of individual traders incurred net loss in FY25,” SEBI said, adding that a similar trend was seen in FY24 as well.

The study noted that while index options turnover declined 9% year-on-year in premium terms and 29% in notional terms, it remained significantly higher compared to two years ago.

Individual investors’ turnover in premium terms fell by 11% year-on-year but rose by 36% over the two-year period.

The number of unique individual investors trading in the segment was down 20% from the previous year but up 24% compared to two years ago.

SEBI said India continues to see relatively very high levels of trading in equity derivatives, particularly in index options, compared to other markets globally.

"Trends in turnover of index options will continue to be observed from the perspective of ensuring investor protection and market stability," the regulator said.

The regulator had introduced several measures in October 2024 and May 2025 to strengthen the derivatives framework, improve risk disclosures, and reduce instances of spurious ban periods for single-stock derivatives.

SEBI said trends in index options turnover will continue to be closely monitored to ensure investor protection and market stability.