SEBI chairman Tuhin Kanta Pandey told market participants that while recent regulatory tweaks have trimmed the overall futures‑and‑options (F&O) deficit, the bulk of individual traders are still hemorrhaging money. He urged retail investors to pause and evaluate whether speculative F&O positions fit their risk profile. 12 lakh crore a year earlier. Yet 88% of these participants recorded a loss, underscoring that the relief is more statistical than personal.
The F&O segment continues to expand, with turnover climbing on both the Nifty and Sensex, but the volatility inherent in leveraged bets remains a drag on retail portfolios. Market indices have shown resilience, with the Nifty hovering near record highs and the Sensex largely unchanged, but persistent retail outflows can strain liquidity in derivative contracts. SEBI has responded with tighter position limits, higher margin requirements and enhanced surveillance to curb excessive speculation. Despite these steps, many small investors still chase short‑term gains without adequate capital buffers.
For the average salaried professional, the takeaway is clear: assess whether the potential upside of F&O trading justifies the high probability of loss. Diversifying into low‑cost equity funds, bonds or systematic investment plans may offer a more stable path to wealth creation.