SEBI Measures Reduce Equity F&O Losses For Retail Investors In FY26

Regulatory measures introduced by Sebi curtailed the aggregate net losses of retail investors in the equity derivatives segment to ₹91,685 crore in FY26, down from ₹1.12 lakh crore in the preceding fiscal year, Parliament was informed on Tuesday.

Additionally, both retail investor volumes and overall trading turnover in equity derivatives (Futures and Options) fell in FY26 compared to the preceding year, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya Sabha.

“Following the regulatory measures, Sebi has observed a year-on-year decline in the number of unique individual investors from 98.10 lakh to 78.60 lakh and net losses of the individuals from ₹1,11,788 crore to ₹91,685 crore in the equity derivatives segment in 2025-26, compared to the previous year,” Chaudhary said.

However, the average per person loss increased to ₹1,16,654 from ₹1,13,913 over the period.

Also, equity derivatives turnover dropped to ₹202 lakh crore in FY26 from ₹213 lakh crore in FY25.

The minister also listed the measures taken by the Securities and Exchange Board of India (Sebi) since November 2024, which led to a decline in the number of retail investors, their losses and trading volumes in the equity derivatives segment.

To strengthen the F&O segment, Sebi has undertaken a set of measures from November 2024 onwards, including rationalisation of weekly index derivatives products, increase in tail risk coverage on the day of options expiry, higher contract size for index derivatives, rationalisation of monthly index derivative products, upfront collection of option premium from buyers, removal of calendar spread treatment on the expiry day and intraday monitoring of position limits.

In May 2025, Sebi took further measures aimed at streamlining the expiry days of various derivative contracts across multiple exchanges and implementing appropriate risk metrics for position limits for better monitoring and disclosure of risks in F&O.

Moreover, the annual Securities Transaction Tax (STT) collected from F&O trades across the NSE and BSE sharply rose to ₹27,695 crore in 2025-27 from ₹7,893 crore in the previous year, the minister said.

In a separate reply, Chaudhary said that loss-making companies or firms with negative net profits are permitted to launch Initial Public Offerings (IPOs) in the country.

As per information furnished by the stock exchanges to Sebi, a total of 39 companies with negative net profits or accumulated losses listed on the mainboard stock exchanges over the last five years.