BSE Shares Plummet to Near-Day Lows Amid Waning F&O Volumes Following STT Hike

National Stock Exchange CEO Comments Cause BSE Shares to Fall

On February 26, shares of BSE fell 2 percentage points from their day's high. The decline was triggered by comments made by NSE CEO Ashishkumar Chauhan at an event in Mumbai. Chauhan stated that more degrowth is likely in futures and options (F&O) volumes following the implementation of a Securities Transaction Tax (STT) hike in April.

BSE shares closed nearly flat at Rs 2,774 apiece after hitting an intraday high of Rs 2,774. Chauhan's comments also highlighted the need for F&O in the face of rising geopolitical risks. Furthermore, he emphasized that rules to curb speculation will continue.

The STT hike was announced in the Budget 2026 by Finance Minister Nirmala Sitharaman. The new rates will be 0.05% for futures, 0.15% for options premium, and 0.15% for the exercise of options. The move aims to provide a "reasonable course correction" in the F&O segment and generate additional revenues for the government.

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According to Sebi, over 90% of retail investors' trades in the F&O segment result in losses. In response, the regulator has taken steps to reduce volumes in the past.

The Nifty Capital Markets index closed in mild red on February 26, led by losses in CDSL, Kfin Tech, and Angel One, which declined by 2.6%, 2.2%, and 2%, respectively.

In other news, National Stock Exchange (NSE) has floated a request for proposal (RFP) and invited multiple investment banks and law firms to pitch for its upcoming initial public offering (IPO). The selection process for advisors has begun, and NSE has reached out to around 20 investment banks and 10 law firms. The advisory firms have been asked to provide information on their track record and team details by Friday.