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India retail options trading holds up even as active traders fall
Sebi’s study found active retail derivatives traders dropped 20.0% to 78.6 lakh in FY26, while equity derivatives turnover fell only 5.0% to ₹202.26 trillion, helped by a 16.0% rise in options turnover.
India’s retail participation in equity derivatives has weakened after regulatory tightening, but options trading has remained comparatively resilient, according to a Securities and Exchange Board of India study cited by LiveMint.
The study said the number of active retail or individual traders in the equity derivatives segment (EDS) of the NSE and BSE fell by about 20.0% to 78.6 lakh in FY26 from 98.1 lakh in the prior fiscal year.
Despite that decline in participants, gross EDS turnover dropped by only about 5.0% year on year to ₹202.26 trillion in FY26, the study said. It attributed the gap to a sharp fall in futures turnover by individual traders of about 20.0%, while options turnover grew by about 16.0%, reinforcing options’ already dominant role.
Sebi measures to curb retail excess included tripling contract size, allowing one weekly contract per exchange instead of multiple, and doubling the extreme loss margin on expiry day. LiveMint also noted that the government increased the securities transaction tax on derivatives in October 2024, and the study found the average net loss per trader rose by 2.4% to ₹1.17 lakh in FY26.