After STT hike proposal, SEBI chief makes big statement on F&O rules

Indian market regulator Sebi does not plan any fresh changes to the futures and options (F&O) framework, even after the recent hike in securities transaction tax (STT) announced in the Union Budget 2026.

Speaking at an event, Sebi chairman Tuhin Kanta Pandey said the regulator is not considering any new restrictions or structural changes in the F&O segment at this stage.

No new action on derivatives

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Pandey said the existing rules governing the derivatives market will continue. He clarified that Sebi is not looking at introducing fresh measures for now, despite ongoing debates around volumes, volatility and retail participation in F&O trading.

Weekly expiry structure to stay

The Sebi chief also ruled out any changes to the weekly expiry structure in index derivatives. Weekly expiries have been a key driver of volumes in recent years and have often come under scrutiny for encouraging short-term speculation.

Pandey said there is no proposal at present to alter the weekly expiry framework.

Derivatives support bond market liquidity

On the broader role of derivatives, Pandey noted that the segment plays an important role in supporting liquidity in the corporate bond market. According to him, derivatives help improve price discovery and risk management, which in turn benefits underlying cash markets.