SEBI Chairman Tuhin Kanta Pandey said, as per a report by PTI that SEBI will maintain the status quo on weekly expiry contracts.
Pandey’s statement came in response to a query on weekly expiry contracts and whether SEBI is considering a ban on them, while he was speaking on the sidelines of a conference organised by the capital markets regulator SEBI to deepen the corporate bond market.
SEBI Chief on STT hike: To continue with existing framework
Responding to questions on the increase in securities transaction tax (STT) on derivative trades, he said “At this point of time, we are not contemplating any measures and whatever framework that we have put in place, that will continue.”
Finance Minister Nirmala Sitharaman, in the Budget 2026, announced to increase the STT on futures contracts from 0.02% to 0.05% and raised the STT on options premium from 0.10% to 0.15%. STT on the exercise of options was also increased to 0.15% from 0.125%.
Trade deals remove uncertainty, could lift FPI sentiment: SEBI chief
Replying to a question on whether the trade deal with the US will push foreign investors to get more money into the country, Pandey said such moves can “spur” investment decisions.
“Fundamentally, when you have an overhang of a regulatory action which is removed and trade frictions removed, so any capital formation is always accelerated,” Pandey said, according to PTI.The removal of the uncertainties can spur investment decisions and get a greater predictability on capital, he added. “So overall in the situation I could say that with the deals that have been done on the trade side, a lot of uncertainties have been removed,” he said.
Over the past 16 months FPIs have withdrawn about $34 billion from Indian equities. According to a report by Jefferies, one of the reason of negative sentiment of FPI was a weak Indian Rupee, and the absence of a trade deal with the US. Jefferies expects that now that one of the biggest concern is addressed FPI sentiments could change and Rupee may strengthen.