New data presented to the Rajya Sabha reveals a notable shift in India's Futures and Options (F&O) trading landscape for the fiscal year 2026. While the total number of unique individual investors engaging in the F&O segment decreased, those who remained active experienced a significant increase in their average per-person losses.
Fewer Traders, Higher Losses
In FY26, the number of individual traders participating in the F&O market dropped to 78.6 lakh, a decrease from 98.1 lakh in FY25. This 20% reduction in participation suggests a cooling off or consolidation among retail investors in this high-risk segment.
Despite this decline in trader numbers, the average loss incurred by each individual trader widened considerably. The average per-person loss climbed to ₹1.16 lakh in FY26, up from ₹1.13 lakh in the preceding fiscal year. This indicates that while fewer individuals are trading, the financial impact on those who do is becoming more severe.
Turnover and Data Source
The total turnover in the F&O segment also saw a decrease, falling to ₹202 lakh crore in FY26 from ₹213 lakh crore in FY25. This data was shared by Minister of State for Finance Pankaj Chaudhary in response to a parliamentary question. The figures are based on an analysis conducted by the Securities and Exchange Board of India (SEBI), drawing information from the top 15 brokers in the equity derivatives market, representing approximately 90% of all individual investors in this segment.
Regulatory Measures and STT Collection
SEBI has implemented several regulatory and surveillance measures aimed at ensuring market stability and protecting investor interests. A key measure includes mandating brokers to display a prominent risk disclosure stating that '9 out of 10 Individual traders made losses in F&O in FY22' when users log in to trading platforms. This initiative aims to make traders more aware of the inherent risks.
Following these regulatory interventions, SEBI observed a year-on-year decline in both the number of unique individual investors and the net losses of individuals in the equity derivatives segment from FY25 to FY26. Overall net losses for individuals decreased from ₹1,11,788 crore to ₹91,685 crore in FY26.
Conversely, the Centre's collection of Securities Transaction Tax (STT) from the F&O segment continued its upward trend. In FY26, STT collection amounted to ₹27,695 crore, with ₹19,802 crore from options and ₹7,893 crore from futures. This marks an increase from the ₹22,225 crore collected in FY25, highlighting the significant revenue generated for the government despite the market's fluctuating retail participation and profitability for individual traders.