SEBI chairman Tuhin Kanta Pandey has advised retail investors to carefully judge whether futures and options trading suits them, after data showed heavy losses despite regulatory tightening. In financial year 2026, nearly 88% of individual traders lost money in equity derivatives. Their combined net loss stood at ₹91,685 crore, lower than ₹1.12 lakh crore in the previous year, but still alarming.
Participation also fell sharply. Active individual traders dropped by 20%, with 46 lakh leaving the market compared to 26 lakh in the earlier year. SEBI had introduced stricter rules to curb speculation. Contract sizes for index derivatives were raised, weekly expiries were reduced, and upfront collection of option premiums was made mandatory. These steps helped reduce overall losses but did not change the odds for small traders.
Pandey noted that many retail participants continue to lose even after three or four years of trading experience. He stressed that investors must assess their own risk appetite and financial capacity before entering derivatives markets.
The regulator’s measures have cooled excessive speculation, shifting market dynamics. Proprietary desks and institutional players still profit, while retail investors struggle. The warning highlights that futures and options remain high‑risk instruments where success rates for individuals are very low.
