The National Stock Exchange (NSE) is “hopeful” of “some review” of the recent hike in the securities transaction tax (STT) announced in the Union Budget for 2026-27 (FY27), the exchange’s management said during an earnings call on Monday.
Alluding to representations made by the trading community and industry participants, the management said it is aware of the concerns raised around the tax increase.
“It is very difficult for us to predict what could be the extent of impact on futures volumes because of this. In the past we have seen increases in STT rates from time to time, but we have not seen any significant or negative impact on the volumes per se. So, it is also possible that the volume gets absorbed by the market participants,” the management added.
In the Budget, Finance Minister Nirmala Sitharaman had announced an increase in STT on futures to 0.05 per cent of the traded price from 0.02 per cent earlier. For options, the tax will rise to 0.15 per cent from 0.1 per cent of the option premium, while the levy on the exercise of options will increase to 0.15 per cent from 0.125 per cent of the intrinsic price.
Responding to analysts’ queries on the potential impact of the Securities and Exchange Board of India’s (Sebi’s) recent decision to withdraw the calendar spread margin benefit for single-stock derivatives on the day of expiry, NSE said broker associations have made representations to the regulator, arguing that participation by small investors in single-stock options and futures has declined over the past year.
Following receipt of a no-objection certificate from the Sebi for its listing, NSE has reconstituted its initial public offering (IPO) committee, and its governing board has approved the public issue through an offer-for-sale.
The exchange is also focusing on several new product launches, including corporate bond index derivatives and government bond index derivatives, alongside an expanded offering in the energy segment. The NSE has received board approval to infuse up to ₹100 crore to set up a coal exchange.
The management added that it plans to launch additional products in the commodities segment, which it sees as an area of potential growth.
