India's Retail Traders Lost $9.6 Billion in Equity Futures and Options in FY 2026

Indian individuals collectively lost ₹916.85 billion (around $9.6 billion) trading equity futures and options during the fiscal year ending March 2026. This figure, while still significant, represents an 18% improvement compared to the previous fiscal year, which saw losses of ₹1.1 trillion.

The decline in losses is attributed to regulatory measures implemented by the Securities and Exchange Board of India (SEBI) aimed at reducing speculative trading among retail investors. Minister of State for Finance, Pankaj Chaudhary, disclosed these figures in a parliamentary session on August 11.

Despite the reduction in total losses, the number of active individual equity derivatives traders fell to under 7.9 million, down from 9.8 million the year before, indicating a shrinking pool of retail speculators. SEBI's regulatory interventions included increasing contract sizes and tightening position limits, which required traders to have more capital to participate.

Additionally, the Reserve Bank of India recently imposed stricter funding rules for proprietary traders and stock brokers, further impacting trading volumes. Average daily notional turnover for futures and options on the National Stock Exchange of India dropped 23% month-over-month in July 2026, reaching a 17-month low of ₹214 trillion.

While the reduction in overall losses may seem like a positive outcome, the average loss per remaining retail trader actually increased, rising to ₹116,654 from ₹113,913 in the previous fiscal year. Total turnover in the futures and options segment also declined, falling from ₹213 trillion to ₹202 trillion.

SEBI's approach to regulating retail trading has been marked by significant changes aimed at curbing the high rate of losses among individual traders, with prior studies indicating that over 90% of retail F&O traders were consistently losing money.