Solely a handful of merchants energy India’s F&O volumes, highlights Zerodha’s Nithin Kamath
Whereas market regulator Securities and Change Board of India (Sebi) has been taking steps to curb speculative buying and selling within the home futures & choices (F&O) markets, Zerodha founder and CEO Nithin Kamath on Wednesday highlighted the extremely skewed nature of India’s derivatives market, noting that regardless of widespread notion, the F&O section stays comparatively small.
Kamath mentioned that in March, solely about 30 lakh people traded F&O contracts, whereas throughout FY26, roughly 20 lakh traded solely in derivatives. Even after combining fairness and F&O members, the quantity rises to only round 64 lakh, a fraction of India’s practically 13 crore investor base.
He identified that solely 3.8 crore traders had been lively throughout segments, implying that simply 30% of traders truly traded, underlining restricted participation within the markets.
Extra importantly, Kamath emphasised that brokerage business revenues are closely depending on a small set of lively merchants, with a disproportionate share of exercise concentrated on the high. Round 60–70% of F&O volumes are generated by simply 1–2% of merchants, reflecting a sharply imbalanced market construction.
In keeping with him, the information means that whereas retail participation has expanded, buying and selling depth—and consequently revenues—are pushed by a really slender base of traders.
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“Regardless of what folks take into consideration F&O buying and selling in India and all its issues, it’s nonetheless a really, very small market in comparison with nearly anything. In reality, within the month of March, solely about 30 lakh folks traded an F&O contract. Throughout FY26 as an entire, solely about 20 lakh folks traded solely in F&O. In the event you mix individuals who traded in equities and F&O, that quantity goes as much as roughly 64 lakh. So that is nonetheless a really small market. Altogether, out of practically 13 crore distinctive traders, solely round 3.8 crore traders had been lively throughout money and F&O. Meaning solely about 30% of traders traded something in any respect,” Kamath tweeted. “And but, the one purpose dealer revenues have held up is {that a} small variety of individuals are buying and selling extra. Just about the whole income pool of the broking business comes from this comparatively small pool of merchants. In the event you take a look at F&O turnover, round 60–70% of buying and selling volumes come from a tiny set of traders, roughly simply 1–2%. That’s the lopsided construction of the Indian markets,” he added.
Regardless of what folks take into consideration F&O buying and selling in India and all its issues, it’s nonetheless a really, very small market in comparison with nearly anything. In reality, within the month of March, solely about 30 lakh folks traded an F&O contract. Throughout FY26 as an entire, solely about 20 lakh folks… https://t.co/aZbzItQb4P”>pic.twitter.com/aZbzItQb4P
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