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Informist, Monday, Jul. 7, 2025

 

--SEBI releases study of equity derivatives segment trading during Dec-May

--SEBI: Nearly 91% individual traders incurred net losses in F&O in FY25

--SEBI: Index options premium turnover down 9% YoY in Dec-May

--SEBI: Index options notional turnover down 29% YoY in Dec-May

 

NEW DELHI – The turnover of individual investors in premium terms in equity derivatives from December to May fell 11% on year following the first set of measures implemented in November, the Securities and Exchange Board of India said in a research paper released Monday. The overall index options turnover in premium terms fell 9% on year, and in notional terms fell 29%, for the same period, according to the SEBI study.

 

The market regulator said it also carried out an analysis of profit and loss of individual traders in equity derivatives for 2024-25 (Apr-Mar), which showed that nearly 91% of them incurred net loss, similar to the trend observed in FY24.

 

The research paper showed a 20% on-year fall in the number of unique individual investors trading in equity derivatives. Although SEBI said the fall in turnover and other parameters was likely due to its curbs on equity derivatives that kicked in from Nov. 20 in stages, it said causality can be hard to establish given "multiple variables and factors."

 

The average daily traded value by individual investors in equity derivatives in Dec-May was INR 560.42 billion compared with INR 627.22 billion in the same period a year ago, the SEBI research paper showed. The market regulator said the highest degrowth in traded value in equity derivatives ranging from 22% to 30% was seen in traders with total turnover of less than INR 1 million in Dec-May. The trader categories with average daily traded value above INR 1 million recorded a degrowth of 4-14%. 

 

SEBI's analysis of profit and loss of individual traders in equity derivatives in FY25 covered only 13 brokerage firms, although the market regulator said these were the top brokerages in that segment with combined client base of around 9.6 million unique equity derivatives traders. This was a chunk of the total market-wide unique equity derivatives traders of 10.7 million.

 

According to the SEBI analysis, net losses of individual equity derivatives traders widened 41% to INR 1.056 trillion in FY25, after accounting for transaction costs. In FY24, the aggregate net loss of individual traders had widened 14% to INR 748.12 billion.

 

SEBI said the aggregate net loss of individual traders in equity derivatives rose 22% sequentially in the September quarter to INR 259.42 billion. In the December quarter, half of which saw only one weekly index options contract each on NSE and BSE, the aggregate net loss jumped 30% sequentially to INR 336.61 billion. In the March quarter, this fell 26% sequentially to INR 247.45 billion, according to the SEBI analysis.  End

 

Reported by Rajesh Gajra

Edited by Akul Nishant Akhoury

 

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