Archive · 17 Dec 2025
Retail Investors Continue F&O Trading Despite Sebi Curb
Even after the Securities and Exchange Board of India (Sebi) introduced stricter rules to control high-risk futures and options (F&O) trading, many new investors are still participating in this market.
The number of people trading equity options has increased, and the total value of these trades has also gone up.
However, most individual investors tend to lose money in these trades.
Sebi has implemented several measures to reduce risks, such as increasing contract sizes and setting limits on trading.
Despite these efforts, new investors keep joining the market, and the overall trading activity remains high.
Large traders and proprietary firms dominate the market, while individual investors contribute a smaller portion of the total trading volume.
Retail investors continue to engage in high-risk F&O trading despite Sebi's intervention and stricter measures.
Equity options volumes in the December quarter have surpassed pre-October 2024 levels, with a 23% increase in average daily premium turnover.
NSE has seen a rebound in participation since the March low, with 3.29 million investors in equity options as of October 2025.
Proprietary traders and large investors dominate the market, contributing significantly to the total turnover.
Sebi's measures include tripling contract sizes, limiting weekly options launches, and imposing net and gross limits to reduce systemic risks.
- Who
- Retail investors, proprietary traders, foreign investors
- What
- Continued high-risk futures and options (F&O) trading despite Sebi intervention
- When
- Over a year since Sebi intervention, with measures implemented from Q3FY25
- Where
- India, primarily on NSE and BSE
- Why
- New and younger investors continue to enter the markets, exploring derivatives as part of their learning curve
- Regulator
- Securities and Exchange Board of India (Sebi)
- Market Leader
- National Stock Exchange of India Ltd (NSE)
- Average Daily Premium Turnover (ADTV)
- ₹75,739 crore (Q3FY26)
- Retail Investors in Equity Options
- 3.29 million (October 2025)
- Retail Contribution to Options Volumes
- Less than 3%
- Proprietary Traders Contribution
- 72.3% of ₹8.2 trillion turnover
- Sebi Measures
- Tripling contract sizes, limiting weekly options launches, imposing net and gross limits
- Total Losses to Individuals (2021-22 to 2024-25)
- ₹2.88 trillion