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Sebi weighs more dynamic F&O risk warnings on brokerage apps
A Sebi study found retail losses in Indian equity derivatives totaled ₹91,685 crore in FY26, while the average loss per trader rose 2% to ₹1.17 lakh.
India's market regulator Sebi is discussing with brokers ways to refine futures and options risk warnings on trading platforms, as retail losses in the segment remain high, LiveMint reports, citing two people close to the matter.
The discussions follow a Sebi study on individual traders' losses in the F&O segment for FY26, which showed total losses fell year over year but the average loss per trader increased. Total losses among individual equity derivatives traders were ₹91,685 crore in FY26, down from ₹1.12 trillion in FY25, while average loss per trader rose 2% to ₹1.17 lakh from ₹1.13 lakh a year earlier.
Sebi found that 87.7% of individual traders incurred losses while trading derivatives in FY26, compared with 90.9% in FY25. It also said participation by individual traders declined for the first time since FY16, with about 8.77 million individual traders in FY26, down 18% from the prior fiscal, and that most were options buyers.
LiveMint reports that Sebi is considering whether warnings should be more than a static caution, including making them dynamic by updating information on loss making traders more frequently, and providing a template for how the warnings should look.