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A latest Sebi study showed that losses in futures and options have declined from Rs 1.12 lakh crore to around Rs 90,000 crore after the regulator's interventions. However, Pandey said many traders continue to lose money even after three to four years of participation, making it important for investors to assess whether derivatives trading is suitable for them. The market regulator will continue to monitor derivatives trading, he said. The comments come against the backdrop of Sebi’s latest study on individual traders in the equity derivatives segment for FY26. The study, released in August, showed that individual traders' aggregate net losses fell to about Rs 91,685 crore in FY26 from about Rs 1.12 lakh crore in FY25. However, 88% of individual traders still incurred losses during the year. Participation had cooled after Sebi tightened derivatives rules. Individual traders in equity derivatives fell about 20% in FY26. The pace of exits also increased, with 46 lakh traders who had participated in FY25 not returning in FY26. This compared with 26 lakh exits in the previous year. Retail losses remain high Sebi findings suggest that while overall losses have reduced, the odds remain poor for individual traders. Nearly nine out of ten individual traders continued to lose money in FY26. The reduction in aggregate losses was partly because fewer traders participated in the segment after the regulator introduced measures to cool excessive speculation. Sebi had earlier introduced steps such as higher contract sizes for index derivatives, fewer weekly index expiries and upfront collection of option premiums. These measures were aimed at reducing speculative retail activity and improving investor protection. Also read: NSE IPO Tracker: Catch all the highlights here The study also showed a sharp divide between individual traders and larger market participants. Proprietary traders recorded the highest gross trading profit at about Rs 44,000 crore in FY26, followed by foreign portfolio investors at about Rs 14,000 crore. Sebi said 99% of profits made by foreign portfolio investors and proprietary traders came from algorithmic trading entities. This reinforces the concern that individual traders are competing in a market where larger, faster and better-capitalised participants have a structural advantage. Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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