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SEBI study: Retail traders lose over ₹1 lakh crore in FY25 on derivatives betsNet losses of individual traders in derivatives surged 41% to ₹1.06 lakh crore in FY25, with average loss per trader rising to ₹1.1 lakh, SEBI’s latest study revealed.By Sheersh Kapoor    | Yoosef K   July 7, 2025, 9:31:03 PM IST (Published)2 Min ReadSEBI’s latest study on the equity derivatives segment shows early signs of cooling in the retail F&O frenzy following regulatory interventions. But investor losses remain alarmingly high, both in scale and frequency.

Net losses of individual traders widened 41% year-on-year, rising to ₹1.06 lakh crore in FY25 from ₹74,812 crore in FY24, after accounting for transaction costs. The average loss per person also jumped to ₹1.1 lakh from ₹86,728 the previous year.

While the number of unique individual investors trading in the F&O segment fell 20% year-on-year in FY25, it remains 24% higher than two years ago. Turnover by individuals in premium terms declined 11% YoY, though it rose 36% over the two-year period.

Index options, which dominate F&O trading — saw a 9% drop in premium turnover and a 29% decline in notional turnover versus last year. However, compared to two years ago, volumes are still significantly higher — up 14% in premium terms and 42% in notional value.

SEBI reiterated that 91% of individual traders in equity derivatives incurred net losses in FY25, highlighting persistent structural risks. The regulator said it would continue monitoring turnover trends in index options from the standpoint of investor protection and market stability.

Over the past four financial years, individual traders in the equity derivatives segment have collectively lost nearly ₹3 lakh crore, according to SEBI data. The net losses have surged steadily from ₹40,824 crore in FY22 to ₹65,747 crore in FY23, ₹74,812 crore in FY24, and further to ₹1,05,603 crore in FY25. This brings the total loss during the four-year period to a staggering ₹2,86,986 crore, highlighting the persistent risks and financial damage retail investors face in the F&O market.

The report comes amid SEBI’s broader push to safeguard retail investors in the rapidly growing F&O segment, where financial literacy and risk controls remain uneven.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsderivatives marketFutures and OptionsSEBISecurities and Exchange Board of India (Sebi)