SEBI’s latest report (Dec 2024–May 2025) reveals a drop in index options trading—down 9% year-on-year in premium terms and 29% in notional terms. However, they remain higher than two years ago by 14% and 42% respectively.
Among individual investors, turnover fell 11% YoY and the number of active traders declined by 20%, though both figures are still above 2023 levels.
The standout concern: 91% of retail traders recorded net losses in FY25, with total losses soaring 41% year-on-year to ₹1.06 lakh crore, repeating last year’s trend.
India still ranks as one of the world’s most active index options markets.
SEBI’s May 2025 measures aim to protect investors through improved disclosures, fewer artificial ban periods in stock derivatives, and stronger monitoring to prevent manipulation and excessive risk-taking.
The core message encourages investors to shift focus toward more stable financial instruments such as SIPs, insurance, IPOs, and long-term savings tools—routes that support both wealth growth and broader economic productivity.
That ₹1 lakh crore loss could have been a boost to national savings—worth thinking about.
