India currently processes approximately 84% of all equity options contracts traded globally. In 2023, the country recorded 85 billion options contracts, with daily notional turnover peaking at $5.5 trillion. Between 2019 and 2024, the number of trading accounts in India increased more than fourfold.
The surge in retail participation was driven by weekly-expiring contracts, with the individual investor share of derivatives volume rising from 2% in 2018 to 41% in 2024. During the 2024 fiscal year, retail traders lost ₹610 billion, while proprietary trading desks generated ₹588 billion in gross profit.
Quantitative trading firm Jane Street reportedly earned over $1 billion from strategies focused on the Indian market. To mitigate systemic risks, the Securities and Exchange Board of India (SEBI) introduced measures in late 2024, including higher minimum contract sizes and mandatory upfront premium collections.
These regulatory interventions led to a decline in options contract volumes of more than 50% in the 2026 fiscal year. Furthermore, the crackdown contributed to a 42% drop in global exchange-traded derivatives volume in 2025, affecting the National Stock Exchange and the Bombay Stock Exchange.
