India’s plan to increase transaction taxes on derivatives trading rattles investors

0 February 2, 2026 10:19

India’s plan to impose higher transaction taxes on derivatives trading has rattled investors. The move to raise the securities transaction tax to 0.05% from 0.02% was revealed during the government’s budget announcement, and is intended to curb speculative trading among retail investors. Equities tumbled some 2% during special trading on Sunday but have since bounced back. Investors fear the higher taxes could be another setback for a market which has been underperforming its peers in Asia. Rebecca Bundhun reports from Mumbai.