<ul data-eligibleForWebStory="false"><li>SEBI has implemented measures to discourage retail investors from trading in derivatives such as rationalising contracts, increasing contract sizes, and upfront collection of option premiums.</li><li>There has been a decrease in average daily trading value in equity derivatives and index options, indicating a cooling off in these segments over the last few years.</li><li>Despite a decline in the number of retail investors trading derivatives, retail losses have increased, reaching ₹1.05 lakh crore in FY25.</li><li>SEBI faces the challenge of balancing regulatory measures to protect retail investors from losses while avoiding negative impacts on market players, considering options like a stricter product suitability framework.</li></ul>

Editorial. Lambs to slaughter

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