SEBI reports that India’s equity derivatives market is seeing a “Gen Z” shift, with traders under 30 now making up about 43% of participants. SEBI also flags that this segment experiences a spike in trading losses in FY26, casting a longer-term concern over risk-taking in derivatives.
The regulator notes that participation is broadening beyond traditional profiles. Individuals with lower annual income—described as earning under ₹5 lakh—are increasingly active, alongside more investors from smaller towns. According to the accounts, a substantial share of these newer entrants also comes into derivatives without prior investment experience in cash equities, contributing to higher turnover and losses.
Across outlets, the common emphasis is on two linked developments: a rapid change in who trades derivatives, and the presence of increased losses alongside that shift. While both reports highlight the growing scale and turnover associated with newer participant groups, they converge on SEBI’s overall message that expanding participation is occurring alongside elevated risk outcomes.
