BSE Ends Near Day’s Low After NSE CEO Flags F&O Volume Impact From STT Hike

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Last Updated: 27th February 2026 - 09:56 am

Summary:

BSE shares closed near the day’s low on February 26 after National Stock Exchange CEO Ashishkumar Chauhan said futures and options volumes could see further decline once the higher Securities Transaction Tax takes effect in April, according to remarks made at an event in Mumbai.
 

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Stock Movement On February 26

Shares of BSE ended at ₹2,774 on February 26 after touching an intraday high of ₹2,774, according to exchange data. The stock fell about 2% from its session high in the final 20 minutes of trade following comments by Ashishkumar Chauhan, Managing Director and CEO of the National Stock Exchange of India.

Chauhan said at the Mumbai event that further degrowth in futures and options volumes is likely after the revised Securities Transaction Tax rates come into effect in April. He also stated that rules aimed at curbing speculation will continue.

STT Hike Announced In Budget 2026

During Budget 2026, Finance Minister Nirmala Sitharaman proposed raising the STT on futures to 0.05% from 0.02%. The STT on options premium will be increased to 0.15% from 0.1%, and the STT on exercise of options will be raised to 0.15% from 0.125%, according to the Budget documents.

The Finance Minister stated in her Budget speech that the changes are intended to provide a reasonable course correction in the F&O segment and generate additional revenue.

Regulatory Data On the F&O Segment

According to studies published by the Securities and Exchange Board of India, over 90% of retail investor trades in the F&O segment result in losses. SEBI has previously introduced measures to moderate volumes in derivatives trading.

The Nifty Capital Markets index closed in the red on February 26, with losses in Central Depository Services (India), KFin Technologies, and Angel One, which declined 2.6%, 2.2% and 2%, respectively, as per exchange data.

Separately, the National Stock Exchange has floated a request for proposal this week, inviting investment banks and law firms for IPO advisory mandates, according to industry sources cited in market reports.

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