Nithin Kamath, the founder and CEO of Zerodha, has raised concerns about the concentration of trading activity in India's futures and options (F&O) market. He revealed that in March 2026, only 30 lakh individuals traded F&O contracts, while just 20 lakh traded exclusively in derivatives throughout FY26. When combining equity and F&O participants, the total rises to approximately 64 lakh, a small fraction of India's nearly 13 crore investor base. Kamath highlighted that only 3.8 crore investors are active across all segments, indicating that merely 30% of investors engage in trading. He noted that a disproportionate share of F&O volumes—60-70%—is generated by just 1-2% of traders, leading to a highly imbalanced market structure. Furthermore, Kamath criticized the recent increase in securities transaction tax (STT) on equity derivatives, arguing that it is unlikely to curb speculation and may instead worsen existing structural problems. He suggested that the policy is flawed, as speculative trading is predominantly concentrated in options rather than futures.