The Securities and Exchange Board of India (SEBI) has said it will not make any immediate changes to the futures and options (F&O) market, despite the recent increase in Securities Transaction Tax (STT) on derivatives. SEBI Chairman Tuhin Kanta Pandey clarified that the regulator is not planning any new restrictions or banning weekly F&O contracts at this time.
The 2026 Union Budget had raised the STT on futures from 0.02% to 0.05% and increased the tax on options premiums to 0.15%. The move was aimed at reducing speculative trading and protecting small investors. Some in the market had expected SEBI to take further action following the hike.
Pandey reassured investors that SEBI prefers a careful and data-driven approach. He specifically said there is no plan to ban weekly expiry F&O contracts, and the current rules will remain in place for now.
Following SEBI’s statement, market sentiment improved. The Nifty Capital Markets index and shares of firms like MCX and Angel One went up, while the broader market also recovered from earlier losses.
SEBI’s position shows its focus on market stability. Instead of acting immediately, the regulator plans to study market trends and consult stakeholders before considering any changes. This approach is aimed at protecting investors while maintaining a healthy derivatives market.
Investors welcomed SEBI’s cautious stance, as it ensures no sudden restrictions will disrupt trading. The regulator appears committed to balancing investor protection with market growth, taking decisions only after thorough review.
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