



F&O trading keeps its grip on retail investors despite Sebi intervention
Subscribe to enjoy similar stories. MUMBAI : It has been over a year since the Securities and Exchange Board of India (Sebi) intervened to promote discipline in the country’s booming derivatives market, yet retail investors continue to wade into high-risk futures and options (F&O) trading.
In fact, newcomers have pushed industry-wide equity options volumes in the December quarter above pre-October 2024 levels, notwithstanding tougher F&O trading curbs—including tripling contract sizes and limiting weekly options launches per exchange to just one. While the overall number of participants has declined since the new measures were implemented, market leader National Stock Exchange of India Ltd (NSE) has seen participation rebound since the March low.
BSE, whose market share in options has crept up steadily since May 2023 from zero to around 25-26%, doesn't provide such data publicly, while the regulator takes into account activity on both exchanges to frame new measures. The average daily premium turnover (ADTV) of index and stock options on National Stock Exchange of India Ltd (NSE) and BSE has risen 23%—the fastest growth in seven quarters—to ₹75,739 crore in the third quarter of 2025-26 (Q3FY26), as on 15 December, from ₹61,446 crore in the previous quarter (Q2FY26), according to data from HDFC Securities Ltd.
Interestingly, this exceeds the ₹73,857 crore turnover recorded in the year-ago quarter (Q2FY25), before Sebi announced the stern measures. The Sebi measures took effect in a phased manner from Q3FY25, after the regulator found that nine out of ten individuals lost money trading in index options, dragging down the ADTV by 17%, from ₹73,857 crore in Q2FY25 to ₹61,446 crore in Q2FY26, according to the brokerage.
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