Budget 2026: India's F&O Market Reform and New Securities Code

• Budget 2026 significantly increased Securities Transaction Tax (STT) on F&O trades, aiming to shift capital from speculation to long-term assets.
• The proposed Securities Markets Code, 2025 (SMC) is a comprehensive reform to modernize India's financial market regulation, replacing outdated laws.
• SMC introduces massive decriminalization, converting minor offenses into civil contraventions with substantial fines, while retaining severe penalties for fraud.
• The Code enhances investor protection by elevating statutory rights, mandating an 'Investor Charter,' and establishing robust grievance redressal mechanisms.
• SMC strengthens market infrastructure with statutory guarantees for settlement finality and introduces a clear eight-year limitation period for SEBI investigations.