The Securities and Exchange Board of India (SEBI) said 87.7% of individual equity-derivatives traders incurred net losses in FY26, putting a measure on the risks facing retail investors in the segment.
Their aggregate net losses reached ₹91,685 crore, down 18% from revised FY25 losses of ₹1.12 lakh crore. SEBI put individual equity-derivatives traders’ transaction costs at ₹24,859 crore and said those costs pushed about 440,000 traders who had gross profits into net losses.
The study covers individual equity-derivatives traders, not all people investing in stocks. It also reported about ₹44,000 crore in gross trading profits for proprietary traders and about ₹14,000 crore for foreign portfolio investors in FY26. Algorithmic entities generated 99% of profits in those two categories, SEBI said. Those figures describe other trader groups and do not establish that their gains came directly from individual traders’ losses. The study reports individual traders’ net results separately from the other groups’ gross profits.
NDTV Profit reported Nov. 8 that Ashish Kumar Chauhan, managing director and CEO of the National Stock Exchange of India (NSE), advised investors to ignore unsolicited stock tips and avoid derivatives without adequate knowledge. The outlet also reported that Chauhan cautioned against decisions driven by rumors, intraday trading, borrowing to invest and risking more than a person could afford to lose.
According to NDTV Profit, Chauhan suggested that people with limited time or market knowledge seek professional help or consider mutual funds. The outlet quoted him saying, “Investment means being patient.” The interview remarks were reported by NDTV Profit.
An NSE New Year 2024 investor message attributed similar guidance to Chauhan, urging caution around high-risk derivatives and frequent trading and emphasizing long-term wealth creation.
