This time in Budget 2026, the government gave a big blow to the investors speculating in the stock market. Security transaction tax increased by 150 percent. After this, it was being speculated that SEBI is now going to impose more strictness on Futures and Options (F&O) trading. But now such a statement has come from SEBI, which has brought great relief to the F&O traders.
SEBI Chairman Tuhin Kant Pandey has made it clear that at present there is no preparation to impose any kind of new rules or restrictions in the derivatives market. He said that the regulatory system which is in force now will continue in future also. This clearly means that neither any new curbs will be imposed on trading nor any changes will be made in the existing rules.
Clear stand regarding weekly expiry also
In recent times, there was speculation that SEBI may abolish the weekly expiry system or make major changes in it. Even on this the SEBI Chairman completely clarified the situation. He said that there is no proposal before SEBI to stop or change the weekly expiry. That means, the system in which option traders are working now will continue to operate in the future also.
Government’s thinking behind increasing STT
In Budget 2026-27, the government has decided to increase STT on derivative trading. STT on equity futures has been increased from 0.02 percent to 0.05 percent. Apart from this, tax on option premium and option exercise has also been increased. The government believes that the total volume of F&O trading in India has become many times more than the country’s GDP and small investors are suffering the most losses. However, SEBI Chairman did not comment directly on the decision to increase STT. He definitely said that SEBI will talk to all the parties related to the market regarding the implementation of the proposals announced in the budget by the government, so that any decision does not affect the stability of the market.
SEBI’s focus on optimum regulation
Tuhin Kant Pandey reiterated that SEBI’s objective is not to be more stringent than necessary, but to keep optimum regulation. This means that the rules should be sufficient to keep the market safe, but not so stringent that trading and investment are affected. SEBI will especially pay special attention to strengthening the corporate bond market.
What does this announcement mean for traders?
The simple meaning of this entire development is that despite the increase in STT, F&O traders do not need any additional fear at the moment. Neither new rules will come, nor weekly expiry will change nor there will be any major shock in the trading structure. This stance of SEBI is considered to maintain confidence in the market.
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