Just 1.8% of Registered Investors Trade Solely in Derivatives: NSE

The National Stock Exchange (NSE), in its latest Market Pulse report for September 2025, said that only about 1.8% of India’s registered investors traded exclusively in equity derivatives during the past 12 months. Out of nearly 120 million registered investors, around 2.1 million traded only in futures and options (F&O).

Investor Distribution

The report showed that out of 37.2 million investors who traded in the last year, about 28.2 million, or 76%, were active only in the cash segment. Roughly 9 million investors participated in equity derivatives, and 77% of them also traded in the cash market. This indicates that most investors did not limit their activity to derivatives alone.

F&O Participation Trends

Participation in the derivatives segment has fluctuated over the past year. It peaked at 5.26 million in June 2024 but dropped to 3 million by March 2025, marking a 23-month low. The decline followed regulatory measures introduced in November 2024, such as higher margin requirements, larger contract sizes, and limited expiry options. A small recovery was seen later, with participation rising to 3.36 million in September from 3.19 million in August.

Trading Activity and Flows

Individual investors were net buyers for the third straight month in September. Between March and June, they withdrew about ₹28,488 crore, but returned in the second quarter with ₹20,469 crore in net inflows. The inflows slowed from ₹11,744 crore in July to ₹491 crore in September. So far in FY26, net inflows from individuals stand at ₹7,332 crore, down from ₹57,089 crore during the same period last year.

F&O Awareness and Participation

According to a SEBI survey, F&O penetration across India remains below 1%. The study highlighted that most investors view derivatives as complex and risky, and over 90% of retail traders in this segment have recorded losses.

Read More: SEBI’s Derivatives Paper Taking Longer Due to Inclusive Approach!

Conclusion

The data shows that only a small fraction of registered investors trade exclusively in derivatives, with the majority still focused on the cash market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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