India govt says retail option trader losses fell 18% after regulatory curbs

Retail investors’ losses in India’s ​equity derivatives market fell ​nearly 18% year-on-year to 916.85 billion ​rupees ($9.61 billion) in the financial year ended March 2026, according to data provided by the government in Parliament on ‌Tuesday.

The ⁠government said ⁠the number of individual investors trading equity derivatives fell by nearly a fifth to 7.86 million, following a series of regulatory measures introduced by the Securities and Exchange Board of India (SEBI) to curb speculative trading activity in the segment ⁠over the ‌last 18 months.

The world’s most populous ​nation ​is home to more than 130 ⁠million retail traders and the world’s biggest ​equity derivative market by volume, in which ​9 out of 10 retail traders made losses on average, a study by the regulator found.

The data, based on an analysis conducted by SEBI, flagged retail investors have collectively ‌lost money in the derivatives segment in each of the last five financial years. ​Losses ​peaked at 1.12 ⁠trillion rupees in the fiscal year ending March 2025 before easing in FY26.

Total turnover also declined to ​202 trillion rupees from 213 trillion rupees year-on-year, according to a written reply by Minister of State for Finance Pankaj Chaudhary filed with the parliament.