Retail losses in derivatives is a macroeconomic concern: Ashish Gupta

Sebi's measures are necessary to align the derivatives market with its underlying cash market, as the current disconnect is unsustainable

Individual investors lost over Rs 1 trillion in derivatives trading during the financial year 2024-25 (FY25), which equates to 6 per cent of household financial savings. Ashish Gupta, chief investment officer, Axis Mutual Fund, who flagged excesses in India’s options markets in his 2023 report- Gamification of Indian Equities, says abundant liquidity and inexperienced investors have turned India’s options market into a playground for global trading firms. In an interview with Samie Modak, Gupta warns that the scale of retail losses has macroeconomic implications, making some regulatory restrictions inevitable. Edited excerpts:

What is your perspective on the current state of