New Delhi, Sept. 28 -- In recent years, retail participation in India's Futures and Options (F&O) segment has grown at an unprecedented pace. Data from Securities and Exchange Board of India (SEBI) reveals that the number of individual F&O traders increased from approximately 48 lakh in FY22 to over 1 crore by FY24, with individual investors accounting for more than 35% of total equity derivatives investments. What was once an institutional domain used mainly by corporations and funds now sees daily involvement from lakhs of everyday investors managing their own portfolios online.

However, a closer look at regulatory data also highlights the significant financial risks involved in this segment. Studies by SEBI show that 93% of individual...