Individuals trading in the equity Futures and Options (F&O) segment recorded net losses of ₹91,685 crore in the financial year ended March 2026, according to data shared by the Ministry of Finance in the Rajya Sabha. The F&O Retail Investor Losses were reported in a written reply to Unstarred Question No. 2633, asked by Smt. Jebi Mather Hisham on August 11, 2026.
The data showed that 78.6 lakh individual traders participated in the equity derivatives segment in FY26. Their average loss per person was ₹1,16,654. The figures were based on an analysis by the Securities and Exchange Board of India (SEBI) covering individual and retail participation and profitability outcomes during the last five financial years.
F&O Retail Investor Losses fell from FY25, but remained high
SEBI’s five-year data showed that 42.74 lakh traders participated in F&O in FY22, with total turnover of ₹115 lakh crore and net losses of ₹40,824 crore. The average loss per person was ₹95,517.
In FY23, the number of traders increased to 58.35 lakh, while total turnover rose to ₹149 lakh crore. Net losses reached ₹65,747 crore, with the average loss per person at ₹1,12,677. In FY24, 86.26 lakh traders recorded total turnover of ₹172 lakh crore, while net losses stood at ₹74,812 crore and average loss per person was ₹86,728.
The number of individual traders increased further to 98.1 lakh in FY25. Total turnover reached ₹213 lakh crore, while net losses climbed to ₹1,11,788 crore and the average loss per person stood at ₹1,13,913. In FY26, traders declined to 78.6 lakh, total turnover stood at ₹202 lakh crore, net losses fell to ₹91,685 crore and the average loss per person was ₹1,16,654.
The government said the data was collected from the top 15 brokers in the equity derivatives market. The sample represented approximately 90% of all individual investors in the segment. Total turnover refers to notional turnover in futures and premium turnover in options.
SEBI has implemented several regulatory and surveillance measures for market stability and investor protection. Brokers are required to display a risk disclosure to individual traders stating that “9 out of 10 Individual traders made losses in F&O in FY22” when users log in to trading platforms.
From November 2024 onwards, SEBI introduced measures including rationalisation of weekly index derivatives products, increased tail-risk coverage on the day of options expiry, increased contract size for index derivatives, rationalisation of monthly index derivative products, upfront collection of option premium from buyers, removal of calendar spread treatment on expiry day and intraday monitoring of position limits.
In May 2025, SEBI took further measures to streamline expiry days of various derivative contracts across multiple exchanges and implement appropriate risk metrics for position limits for better monitoring and disclosure of risks in F&O. The government said that following these regulatory measures, SEBI observed a year-on-year decline in unique individual investors from 98.10 lakh to 78.60 lakh and net losses from ₹1,11,788 crore to ₹91,685 crore in FY25 and FY26, respectively.
Government reports ₹27,695 crore F&O STT collection in FY26
The Rajya Sabha reply also covered Securities Transaction Tax (STT) collected from F&O trades across the NSE and BSE. The government said STT is structured as a technology-driven, intermediary-based collection mechanism that embeds automatic tax collection into the regulated securities market infrastructure, materially curbing opportunities for pilferage and tax evasion.
STT from options, including physical settlement, increased from ₹3,687 crore in FY22 to ₹6,194 crore in FY23, ₹10,235 crore in FY24, ₹14,884 crore in FY25 and ₹19,802 crore in FY26. STT from futures stood at ₹2,947 crore in FY22, ₹2,859 crore in FY23, ₹4,124 crore in FY24, ₹7,340 crore in FY25 and ₹7,893 crore in FY26.
Total STT paid by exchanges from the F&O segment rose from ₹6,634 crore in FY22 to ₹9,053 crore in FY23, ₹14,359 crore in FY24, ₹22,225 crore in FY25 and ₹27,695 crore in FY26. The figures were provided for NSE and BSE and sourced from SEBI.
The government also stated that SEBI has not carried out an examination of the impact of algorithmic and high-frequency trading on market fairness and retail investors. The reply further said SEBI has put regulatory and surveillance measures in place for market stability and protection of investors in the stock market.
