Just days after Nirmala Sitharaman’s Budget 2026 announcement of a Securities Transaction Tax (STT) hike on derivatives transactions, SEBI chairperson Tuhin Kanta Pandey, in a recent Q&A session, was asked whether the market regulator would follow it up with further curbs.
In response, the SEBI chief stated it will follow the ‘status quo’ on the derivatives market, downplaying expectations of any immediate regulatory intervention while signalling a data-driven approach.
“When we as a regulator look at derivative markets, we do so in a very methodical manner based on data,” Pandey said during a Q&A session. “At this moment, we are not contemplating any measures, and whatever framework that we have put in place, that will continue.”
Tuhin Kanta Pandey’s comments come at a time when market participants, especially in the futures and options (F&O) segment, have been deeply impacted by a steep climb in transaction costs. The 2026 Budget proposed hiking STT on futures from 0.02% to 0.05%, while the tax on option premiums rose from 0.1% to 0.15%.
Reacting to the move, Zerodha founder Nithin Kamath had pointed out that the move may backfire, potentially leading investors into the options segment, which is seen as more speculative.
Pandey also went on to quash rumours about the potential termination of the weekly expiry contract, which was seen as a second wave of tightening following the STT hike.
“Our status quo is as it is going on—what our regulatory framework is,” he clarified. “Up until now, there has been no mention of any change.”
The SEBI chairperson’s comments suggest the regulator might opt for some bit of stability in the F&O markets. By maintaining the status quo, it appears the regulator is allowing the market find some balance before deciding if further curbs are required to protect investor capital.
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