Negative impactStocks
STT hikes backfire? Zerodha's Nithin Kamath says traders are moving to ‘riskier options trades’
Mint 1 hr ago·29 Oct 2026, 6:51 am
Zerodha co-founder Nithin Kamath has flagged a potential side effect of recent tax changes. He suggests that higher transaction taxes and restrictions on futures and options trading have prompted some traders to shift toward riskier options strategies. This shift is significant because it changes the risk profile of the market.
This trend matters to investors as it could alter market dynamics. If more traders are engaging in riskier behaviour, the market may become more volatile. It also raises questions about the effectiveness of the current curbs in managing risk.
Investors should watch for changes in trading volume and volatility. A sustained increase in riskier trades could signal that traders are finding workarounds to the new rules. Monitoring these shifts will be key to understanding the market's reaction to the new regulations.
Excerpt from Mint
Zerodha's Nithin Kamath warned that higher securities transaction taxes and other curbs on futures and options trading may have pushed traders toward riskier behaviour. On Zerodha, about 50% of individual futures traders and 40% of option sellers were profitable, compared with 10% of option buyers. Zerodha co-founder…Read the original at Mint
Key takeaways
- Category: Stocks.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
