Despite SEBI's warning, investors are facing heavy losses in options and futures trading. In FY25, 91% of individual investors lost a total of Rs 1.06 lakh crore in F&O trading. The market valuation decreased by Rs 1.75 lakh crore due to the call-put game, bringing the rally in multibagger stocks to a halt.
SEBI's warning: SEBI has intensified its actions to curb uncontrolled speculation in options and futures trading, leading to a significant market downturn. Multibagger stocks on BSE and NSE saw a decline of up to 29% and 22% respectively, resulting in a loss of Rs 1.75 lakh crore for investors. 91% of individual investors in F&O trading incurred losses, and SEBI has left no stone unturned in regulating this sector.
SEBI's Strictness and Market Impact
SEBI has consistently taken steps to address shortcomings in options and futures trading. Recently, SEBI further accelerated its campaign, causing a rapid decline in the market. The rally in multibagger stocks on BSE and NSE suddenly halted, and many stocks fell 20-30 percent from their all-time highs. Experts state that investors enter F&O trading anticipating a significant market rally, but due to a lack of information and understanding, they suffer heavy losses.
Specifically, BSE shares fell by approximately 29%, causing investors to bear losses of Rs 35,000 crore. NSE's multibagger stocks also declined by up to 22%, resulting in a total loss of Rs 1.4 lakh crore.
Impact on Companies' Earnings
The sudden decline in F&O trading also impacted companies' earnings. For instance, shares of discount brokerage firm Angel One saw a decline of up to 37%. According to expert Neeraj Dewan, discussions about extending weekly expiry to 15 days or reducing the number of expirations have caused market volatility. Furthermore, fear among investors persists regarding SEBI's potential actions.
Global brokerage firm Jefferies stated that if weekly expiry is extended to 15 days, a reduction of 20-50% in EPS for BSE and 15-25% for Nuvama is possible. Meanwhile, if SEBI implements monthly expiry, selling pressure in the market could increase further.
Loss Figures in F&O
SEBI decided to regulate F&O trading in October 2024. In FY25, 91 percent of individual investors incurred a total loss of Rs 1.06 lakh crore in the equity derivatives segment. This means that, on average, a trader lost Rs 1.1 lakh.
NSE is a dominant player in this segment, holding a 78% share in option premium trading and a 99% share in futures premium trading. Its market share in total turnover was 93.5 percent by June 2025. BSE and NSE have recently altered the expiry dates for derivatives, increasing both investor expectations and volatility.
Market Data and Trading Volume
In August 2025, daily turnover increased on both BSE and NSE. NSE's Average Daily Trading Volume (ADTV) rose by 3.2% to Rs 236 lakh, while BSE's ADTV increased by 17.2% to Rs 178 lakh crore. This indicates that investors are active in the market, but significant risks are also present in F&O trading.
