Awareness of SEBI's F&O Loss Studies versus F&O Participation among 18–30-Year-Old Demat Holders in Bengaluru

In January 2023 SEBI published a study showing that 89% of individual traders in equity futures and options (F&O) lost money in FY 2021-22. A larger follow-up in September 2024 found that 93% of more than one crore individual F&O traders lost money between FY22 and FY24, and that the share of traders below 30 years of age was rising quickly. In July 2025 SEBI reported that 91% of individual traders lost money in FY25, with net losses after costs of about ₹1.06 lakh crore. Brokers now show a risk disclosure saying, in effect, that nine out of ten individual traders lose money.

This B.Com survey project asks a simple question with a testable answer: do young demat holders know these findings, and is awareness related to whether, how often and how much they trade F&O? The respondents are about 160 Bengaluru residents aged 18–30 with a demat account, including students, early-career employees and gig workers.

The questionnaire measures awareness of the SEBI findings and the October 2024 index-derivative measures, F&O participation (never, tried and stopped, occasional, frequent), self-reported outcome, information sources (finfluencers, friends, broker apps, courses) and risk attitude. Analysis uses Excel cross-tabs and chi-square tests, written up in the BCU B.Com SEP 5.6 Survey Project format with a log book and viva.

Abstract

This survey examines the relationship between awareness of SEBI's published studies on individual traders' losses in equity derivatives and actual participation in F&O trading among 18–30-year-old demat account holders in Bengaluru. A structured questionnaire administered to about 160 respondents measures awareness, participation level, information sources and risk attitude. Cross-tabulation and chi-square tests examine whether awareness is associated with participation and continued trading. The findings inform investor-education efforts aimed at young investors.

Introduction

Demat accounts in India have multiplied since 2020, driven by low-cost mobile brokers, social-media content about trading and the ease of opening accounts online. A large share of new investors are young, and equity derivatives, especially weekly index options, attract them because a small premium promises large gains. SEBI's studies show the reality for most individual traders: losses, made worse by transaction costs. SEBI responded with risk disclosures and, from late 2024, measures such as larger index-derivative contract sizes and fewer weekly expiries.

Research gap

Existing B.Com and MBA surveys on retail investors usually measure general stock-market awareness or investment preference. None we found tests whether young people know the specific, official loss statistics, or whether that knowledge is related to their trading decisions. This is a measurable gap that a semester project can address.

Objectives in brief

• Measure awareness of SEBI's F&O loss findings and recent measures.
• Describe F&O participation and information sources among young demat holders.
• Test the association between awareness and participation.
• Suggest practical investor-education approaches.

Feasibility

• Data: primary survey via Google Forms shared through college alumni groups, coworking spaces and personal networks with screening questions; secondary data from SEBI and NSE websites.
• Tools: Excel is taught in the programme; SPSS is available in the college lab.
• Ethics: no PAN, client ID, broker statements or P&L screenshots collected.

SEBI's studies show that most individual F&O traders lose money, and that young traders form a growing share. Risk disclosures are now displayed on broker platforms, but it is not known whether young investors have actually read or understood them, or whether awareness makes any difference to behaviour. If awareness is high but participation remains high, investor education needs to focus on behaviour and risk attitude, not information. If awareness is low, the disclosures are not reaching their audience. The problem for this study is to measure awareness of SEBI's F&O loss findings among 18–30-year-old demat holders in Bengaluru and to test whether awareness is associated with their F&O participation and continuation.

The study covers Bengaluru residents aged 18 to 30 who hold a demat account. It covers equity derivatives (index and stock futures and options) only, not commodity or currency derivatives. Outcomes are self-reported and not verified with broker statements. The study does not give investment advice and does not evaluate any broker or trading app.

Research design

Descriptive survey research with primary data, supported by secondary data from SEBI's study reports (January 2023, September 2024, July 2025), SEBI's October 2024 circular on equity index derivatives and NSE market statistics.

Sample

• Population: demat holders aged 18–30 in Bengaluru (size unknown).
• Sampling: purposive sampling with screening (age 18–30, Bengaluru resident, holds a demat account), reached through college alumni groups, two coworking spaces and personal networks; quotas of about half students and half working respondents.
• Sample size: about 160 usable responses, which allows chi-square tests with expected cell counts of at least 5 for 2 × 4 tables.

Questionnaire

Pilot: 15 respondents; unclear questions reworded; Cronbach's alpha for Section G.

Hypotheses

α = 0.05. Awareness is split into low (0–3) and high (4–6).

Timeline (10 weeks)