Derivatives market gets Gen Z twist, but losses cast a long shadow: Sebi

The country's equity derivatives market has taken on a notably younger profile, with traders under 30 making up 43 per cent of individual participants in FY26, a sharp rise from 31 per cent four years earlier, according to a study.

However, the younger cohort also recorded a higher incidence of losses, the study by the Securities and Exchange Board of India (Sebi) revealed.

Around 89 per cent of traders below 30 were loss-makers in FY26 compared to 81 per cent of participants above 60.

The changing age profile is part of a wider transformation in the retail derivatives market, which has increasingly drawn investors outside India's largest cities and from relatively lower-income groups.

About three-fourths of individual derivatives traders belonged to the annual income category of below Rs 5 lakh.

This group accounted for 43 per cent of turnover, but 53 per cent of aggregate losses, the regulator said.

Around 88 per cent of traders in this income category incurred losses, compared