Congress leader Rahul Gandhi on Tuesday called on the Securities and Exchange Board of India (SEBI) to identify “big players” who he claims are profiting at the expense of small traders in Futures and Options (F&O) trading.
Gandhi highlighted that 90 per cent of small investors have lost a combined Rs 1.8 lakh crore in F&O trading over the past three years. He referred to a SEBI study that revealed more than 91 per cent, or 73 lakh individual traders lost money in the F&O segment in FY24, with an average net loss of Rs 1.2 lakh per person.
In a post on X on Tuesday, Gandhi said, “Uncontrolled F&O trading has grown 45x in 5 years. 90% of small investors have lost Rs 1.8 lakh Cr in 3 years. SEBI must reveal the names of the so called “Big Players“ making a killing at their expense.”
A study conducted by SEBI revealed on Monday that over 91 per cent, or 73 lakh, individual traders lost money in the F&O segment in FY24 with an average net loss of Rs 1.2 lakh per person.
Further, 93 per cent of over 1 crore individual F&O traders incurred average losses of about Rs 2 lakh per trader (inclusive of transaction costs) during the three years from FY22 to FY24. The aggregate losses of such traders exceeded Rs 1.8 lakh crore during the period.
In FY24 alone, individuals incurred approximately Rs 75,000 crore in net losses. The top 3.5 per cent of loss-makers—about 4 lakh traders—experienced an average loss of Rs 28 lakh per person.
Only 7.2 per cent of individual F&O traders reported a profit over the three years, with just 1 per cent earning profits exceeding Rs 1 lakh after adjusting for transaction costs.
The number of retail traders nearly doubled in two years, rising to about 96 lakh in FY24 from approximately 51 lakh in FY22. While these investors contributed around 30 percent to the total turnover in FY24, they represent 99.8 percent of all traders in the equity F&O segment.
SEBI noted that the rise of sophisticated trading platforms and lower transaction costs has allowed retail investors to actively engage in options and futures contracts, boosting market liquidity. However, the regulator asserted the need for investor education and risk management practices, as many retail traders continue to incur losses in the market.