{"id":20767,"date":"2026-02-04T14:45:48","date_gmt":"2026-02-04T09:15:48","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=20767"},"modified":"2026-02-04T14:45:48","modified_gmt":"2026-02-04T09:15:48","slug":"sebi-signals-no-immediate-fo-curbs-is-regulatory-pressure-easing-for-markets","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/sebi-signals-no-immediate-fo-curbs-is-regulatory-pressure-easing-for-markets\/","title":{"rendered":"SEBI Signals No Immediate F&#038;O Curbs \u2014 Is Regulatory Pressure Easing for Markets?"},"content":{"rendered":"<div class=\"flex flex-col text-sm pb-25\">\n<article class=\"text-token-text-primary w-full focus:outline-none [--shadow-height:45px] has-data-writing-block:pointer-events-none has-data-writing-block:-mt-(--shadow-height) has-data-writing-block:pt-(--shadow-height) [&amp;:has([data-writing-block])&gt;*]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" tabindex=\"-1\" data-turn-id=\"request-WEB:29aa567a-6b43-4763-a4b9-1b6a4d2e73ff-16\" data-testid=\"conversation-turn-10\" data-scroll-anchor=\"true\" data-turn=\"assistant\">\n<div class=\"text-base my-auto mx-auto pb-10 [--thread-content-margin:--spacing(4)] @w-sm\/main:[--thread-content-margin:--spacing(6)] @w-lg\/main:[--thread-content-margin:--spacing(16)] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:40rem] @w-lg\/main:[--thread-content-max-width:48rem] mx-auto max-w-(--thread-content-max-width) flex-1 group\/turn-messages focus-visible:outline-hidden relative flex w-full min-w-0 flex-col agent-turn\" tabindex=\"-1\">\n<div class=\"flex max-w-full flex-col grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal [.text-message+&amp;]:mt-1\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"c3384da8-fd6e-43a8-9227-32f56d342b0b\" data-message-model-slug=\"gpt-5-2\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[1px]\">\n<div class=\"markdown prose dark:prose-invert w-full wrap-break-word light markdown-new-styling\">\n<p data-start=\"488\" data-end=\"584\">SEBI\u2019s \u2018no new F&amp;O curbs\u2019 signal lifts capital market stocks and reshapes trader expectations<\/p>\n<p data-start=\"586\" data-end=\"902\">India\u2019s capital markets saw a sentiment boost on February 4 after Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said the regulator is not considering any immediate changes to futures and options (F&amp;O) rules, calming fears of tighter curbs in a segment heavily used by traders and hedgers.<\/p>\n<p data-start=\"904\" data-end=\"1209\">Pandey\u2019s comments came amid heightened policy focus on derivatives trading following the Union Budget\u2019s move to raise securities transaction tax (STT) on equity derivatives. His remarks helped lift capital market-linked stocks and reassured market participants worried about further regulatory tightening.<\/p>\n<p data-start=\"1211\" data-end=\"1480\">\u201cThere will be no new F&amp;O curbs and no change in weekly expiry,\u201d Pandey told reporters on the sidelines of an event in Mumbai. He added, \u201cAt this point of time, we are not contemplating any measures and whatever framework that we have put in place, that will continue.\u201d<\/p>\n<h2 data-start=\"1482\" data-end=\"1553\">Clarity from SEBI comes as derivatives trading faces policy scrutiny<\/h2>\n<p data-start=\"1555\" data-end=\"1734\">The statement is significant because derivatives volumes in India have expanded rapidly, drawing scrutiny from policymakers concerned about speculation and retail investor losses.<\/p>\n<p data-start=\"1736\" data-end=\"1846\">In the Union Budget for 2026\u201327, Finance Minister Nirmala Sitharaman proposed higher STT rates on derivatives:<\/p>\n<ul data-start=\"1848\" data-end=\"2033\">\n<li data-start=\"1848\" data-end=\"1893\">\n<p data-start=\"1850\" data-end=\"1893\">STT on futures raised to 0.05% from 0.02%<\/p>\n<\/li>\n<li data-start=\"1894\" data-end=\"1939\">\n<p data-start=\"1896\" data-end=\"1939\">STT on options premium increased to 0.15%<\/p>\n<\/li>\n<li data-start=\"1940\" data-end=\"1998\">\n<p data-start=\"1942\" data-end=\"1998\">STT on exercise of options raised to 0.15% from 0.125%<\/p>\n<\/li>\n<li data-start=\"1999\" data-end=\"2033\">\n<p data-start=\"2001\" data-end=\"2033\">Other STT rates left unchanged<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2035\" data-end=\"2225\">The government argued that the scale of derivatives trading \u2014 estimated at more than 500 times India\u2019s GDP in notional terms \u2014 justified a tax adjustment to curb purely speculative activity.<\/p>\n<p data-start=\"2035\" data-end=\"2225\">Also Read : <a href=\"https:\/\/www.niftytrader.in\/markets\/ipo-news\/brandman-retail-ipo-opens-for-subscription-but-will-valuation-comfort-and-gmp-trends-support-investor-interest\/\">Brandman Retail IPO Opens for Subscription \u2014 But Will Valuation Comfort and GMP Trends Support Investor Interest?<\/a><\/p>\n<h2 data-start=\"2227\" data-end=\"2286\">Capital market stocks rally as regulatory overhang eases<\/h2>\n<p data-start=\"2288\" data-end=\"2351\">Following Pandey\u2019s remarks, capital market stocks moved higher.<\/p>\n<p data-start=\"2353\" data-end=\"2480\">The Nifty Capital Market index traded about 1.6% higher in the session, with brokerage and exchange-linked firms leading gains.<\/p>\n<ul data-start=\"2482\" data-end=\"2600\">\n<li data-start=\"2482\" data-end=\"2514\">\n<p data-start=\"2484\" data-end=\"2514\">MCX shares rose roughly 4.7%<\/p>\n<\/li>\n<li data-start=\"2515\" data-end=\"2547\">\n<p data-start=\"2517\" data-end=\"2547\">Angel One climbed about 3.5%<\/p>\n<\/li>\n<li data-start=\"2548\" data-end=\"2600\">\n<p data-start=\"2550\" data-end=\"2600\">BSE shares rebounded about 3% from the day\u2019s low<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2602\" data-end=\"2768\">Market participants said the rally reflected relief that no immediate operational restrictions \u2014 such as limits on expiries or contract structures \u2014 were forthcoming.<\/p>\n<p data-start=\"2770\" data-end=\"2912\">A Mumbai-based derivatives trader said, \u201cThe fear was about sudden rule changes. When that uncertainty goes away, positioning becomes easier.\u201d<\/p>\n<h2 data-start=\"2914\" data-end=\"2967\">Here\u2019s what happened today and why traders reacted<\/h2>\n<p data-start=\"2969\" data-end=\"3036\">Traders reacted to the removal of near-term regulatory uncertainty.<\/p>\n<p data-start=\"3038\" data-end=\"3071\">Key triggers behind the reaction:<\/p>\n<ul data-start=\"3073\" data-end=\"3249\">\n<li data-start=\"3073\" data-end=\"3113\">\n<p data-start=\"3075\" data-end=\"3113\">No change in weekly expiry structure<\/p>\n<\/li>\n<li data-start=\"3114\" data-end=\"3163\">\n<p data-start=\"3116\" data-end=\"3163\">No new F&amp;O curbs despite recent policy debate<\/p>\n<\/li>\n<li data-start=\"3164\" data-end=\"3206\">\n<p data-start=\"3166\" data-end=\"3206\">Clear communication from the regulator<\/p>\n<\/li>\n<li data-start=\"3207\" data-end=\"3249\">\n<p data-start=\"3209\" data-end=\"3249\">Existing framework to continue for now<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"3251\" data-end=\"3400\">For short-term traders, regulatory clarity matters because F&amp;O strategies often depend on contract design, expiry cycles and liquidity concentration.<\/p>\n<h2 data-start=\"3402\" data-end=\"3472\">Government frames STT hike as investor protection, not revenue move<\/h2>\n<p data-start=\"3474\" data-end=\"3590\">Officials have emphasized that the derivatives tax changes are meant to protect investors rather than raise revenue.<\/p>\n<p data-start=\"3592\" data-end=\"3879\">Chief Economic Advisor V. Anantha Nageswaran said the objective is to safeguard household savings. \u201cThe purpose is to ensure that hard-earned savings are deployed in ways that help households build wealth. SEBI has repeatedly highlighted how retail investors lose money in F&amp;O,\u201d he said.<\/p>\n<p data-start=\"3881\" data-end=\"4189\">Revenue Secretary Arvind Shrivastava echoed the concern, saying derivatives volumes point to heavy speculation relative to the underlying cash market and GDP. He said the intention is to discourage speculation and address systemic risk, while noting revised rates remain modest compared with trading volumes.<\/p>\n<h2 data-start=\"4191\" data-end=\"4244\">SEBI also pushes for deeper corporate bond markets<\/h2>\n<p data-start=\"4246\" data-end=\"4457\">Beyond derivatives, Pandey highlighted the need to deepen India\u2019s corporate bond market. He cited a SEBI survey suggesting more investors are aware of cryptocurrencies than bonds, underscoring the awareness gap.<\/p>\n<p data-start=\"4459\" data-end=\"4630\">He said bond markets have grown over the past decade but require broader issuer participation, more public issuances and diversification beyond financial sector borrowers.<\/p>\n<p data-start=\"4632\" data-end=\"4804\">SEBI has adopted what Pandey described as an \u201coptimum regulation\u201d approach for bonds and is engaging with market participants on budget proposals aimed at market deepening.<\/p>\n<p data-start=\"4806\" data-end=\"4985\">BSE Managing Director and CEO Sundararaman Ramamurthy suggested mandating bond market access for fundraising above a certain size and offering tax incentives to encourage issuers.<\/p>\n<h2 data-start=\"4987\" data-end=\"5057\">Trade deals and policy predictability seen aiding capital formation<\/h2>\n<p data-start=\"5059\" data-end=\"5190\">Pandey also linked easing trade frictions to investment sentiment, saying trade deals such as those with the US reduce uncertainty.<\/p>\n<p data-start=\"5192\" data-end=\"5408\">\u201cWhen you have an overhang of a regulatory action which is removed, and trade frictions removed, any capital formation is always accelerated,\u201d he said. Greater predictability, he added, can spur investment decisions.<\/p>\n<h2 data-start=\"5410\" data-end=\"5457\">What this means for investors and portfolios<\/h2>\n<p data-start=\"5459\" data-end=\"5548\">For investors, the immediate takeaway is regulatory stability in the derivatives segment.<\/p>\n<p data-start=\"5550\" data-end=\"5591\">Potential portfolio implications include:<\/p>\n<ul data-start=\"5593\" data-end=\"5786\">\n<li data-start=\"5593\" data-end=\"5633\">\n<p data-start=\"5595\" data-end=\"5633\">Greater confidence in F&amp;O strategies<\/p>\n<\/li>\n<li data-start=\"5634\" data-end=\"5673\">\n<p data-start=\"5636\" data-end=\"5673\">Reduced fear of abrupt rule changes<\/p>\n<\/li>\n<li data-start=\"5674\" data-end=\"5727\">\n<p data-start=\"5676\" data-end=\"5727\">Continued viability of weekly expiry-based trades<\/p>\n<\/li>\n<li data-start=\"5728\" data-end=\"5786\">\n<p data-start=\"5730\" data-end=\"5786\">Supportive sentiment for brokerage and exchange stocks<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"5788\" data-end=\"5901\">However, the higher STT still raises trading costs, which could gradually influence volumes and strategy choices.<\/p>\n<h2 data-start=\"5903\" data-end=\"5938\">What to watch in the coming days<\/h2>\n<p data-start=\"5940\" data-end=\"5982\">Investors and traders are likely to track:<\/p>\n<ul data-start=\"5984\" data-end=\"6240\">\n<li data-start=\"5984\" data-end=\"6041\">\n<p data-start=\"5986\" data-end=\"6041\">Whether derivatives volumes adjust after the STT hike<\/p>\n<\/li>\n<li data-start=\"6042\" data-end=\"6086\">\n<p data-start=\"6044\" data-end=\"6086\">Any future consultation papers from SEBI<\/p>\n<\/li>\n<li data-start=\"6087\" data-end=\"6125\">\n<p data-start=\"6089\" data-end=\"6125\">Retail participation trends in F&amp;O<\/p>\n<\/li>\n<li data-start=\"6126\" data-end=\"6190\">\n<p data-start=\"6128\" data-end=\"6190\">Performance of capital market stocks after the initial rally<\/p>\n<\/li>\n<li data-start=\"6191\" data-end=\"6240\">\n<p data-start=\"6193\" data-end=\"6240\">Further policy signals on investor protection<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"6242\" data-end=\"6472\" data-is-last-node=\"\" data-is-only-node=\"\">For now, SEBI\u2019s message suggests continuity rather than disruption. In a market sensitive to policy signals, that clarity has provided near-term relief \u2014 even as the broader debate on speculation and investor protection continues.<\/p>\n<ul>\n<li><a href=\"https:\/\/www.niftytrader.in\/nifty50-contributors\">Nifty 50<\/a><\/li>\n<li><a href=\"https:\/\/www.niftytrader.in\/nifty-bank-contributors\">Bank Nifty<\/a><\/li>\n<li><a href=\"https:\/\/www.niftytrader.in\/stocks-price\/bse\">Sensex<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>SEBI\u2019s \u2018no new F&amp;O curbs\u2019 signal lifts capital market stocks and reshapes trader expectations India\u2019s capital markets saw a sentiment boost on February 4 after Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said the regulator is not considering any immediate changes to futures and options (F&amp;O) rules, calming fears of tighter [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-20767","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/20767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=20767"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/20767\/revisions"}],"predecessor-version":[{"id":20769,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/20767\/revisions\/20769"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/20768"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=20767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=20767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=20767"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=20767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}