Parliament Question: Mandatory NISM Series VIII Certification for F&O Trading

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS RAJYA SABHA UNSTARRED QUESTION NO. 2802 TO BE ANSWERED ON TUESDAY, MARCH 17, 2026/PHALGUNA 26, 1947 (SAKA) MANDATORY NISM SERIES VIII CERTIFICATION FOR F&O TRADING 2802. SHRI SAMIK BHATTACHARYA: Will the Minister of Finance be pleased to state: a) the extent of losses incurred by retail and institutional investors in Futures and Options (F&O) trading in the country during the last five years, year-wise; b) whether SEBI has assessed the relationship between investor losses in F&O trading and lack of adequate certification or knowledge, including possession of the NISM Series VIII: Equity Derivatives Certification; c) whether Government or SEBI is considering making the NISM Series VIII: Equity Derivatives Certification Examination mandatory for all individuals and entities prior to permitting participation in F&O trading; and d) the number of F&O traders in the country currently holding NISM Series VIII certification, State-wise? ANSWER MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY) (a) In the studies conducted by SEBI on F&O segment, the profits and losses of Individual Investors category were analysed for four years (FY 2021-22, FY 2022-23, FY 2023-24 and FY 2024-25), while those for the Institutional Investors category were analysed for two years (FY 2023-24 and FY 2024-25). The details of the same are as follows: Table: Gross Profits and Losses in the Equity Derivatives Segment (In Rs. Crore) FY Individuals Institutional investors 2021-22 30,778 (Loss) Not studied 2022-23 48,765 (Loss) Not studied 2023-24 52,361 (Loss) 28,172 (Profit) 2024-25 74,713 (Loss) 31,371 (Profit)*b) SEBI has not carried out any study to analyse the relationship between investor losses in F&O trading and lack of adequate certification or knowledge, including possession of the NISM Series VIII: Equity Derivatives Certification. c) Presently, there is no such proposal under consideration by SEBI. d) The information on the number of F&O traders in the country currently holding NISM Series VIII certification, state-wise, is not available with SEBI. *Notes: 1. For FY 2021-22, FY 2022-23 and FY 2023-24, findings are based on the sample of 113 lakh Futures and Options (F&O) traders (collected from top 15 brokers), whereas for FY 2024-25, findings are based on the sample of 96 lakh Futures and Options (F&O) traders (collected from top 13 brokers). 2. Institutional investors include Foreign Portfolio Investors (FPIs) and Domestic Institutional Investors (DIIs). 3. Gross P&L refers to the trading P&L before adjusting for the transaction costs ****