Negative impactOrders & Deals

Zerodha's Nithin Kamath says higher STT may have pushed traders towards riskier bets

CNBC-TV18 1 hr ago·29 Oct 2026, 5:50 am

Zerodha co-founder Nithin Kamath has warned that increased transaction taxes and larger contract sizes may be driving retail traders toward riskier, unregulated markets like crypto and unlisted options. He suggests that these higher costs are making traditional exchanges less attractive compared to alternative platforms.

This shift is significant for investors as it highlights a growing trend of capital moving out of regulated markets into higher-risk assets. While these alternative markets can offer higher returns, they also carry significantly greater risks, including the potential for total loss of capital due to the lack of regulatory oversight.

Investors should closely monitor regulatory responses to this trend. If authorities introduce measures to level the playing field or increase oversight in these alternative markets, it could alter the risk-return profile for retail traders. Staying informed about these developments is crucial for managing investment portfolios effectively.

Excerpt from CNBC-TV18

Published On Oct 29, 2026 | 11:20 IST Last Updated On Oct 29, 2026 | 11:20 IST Higher transaction taxes and larger contract sizes have inadvertently pushed speculative retail traders from futures into riskier options buying and unregulated crypto derivatives. Discover how weekly expiries and extreme leverage are…
Read the original at CNBC-TV18

Key takeaways

  • Category: Orders & Deals.
  • 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.

Summary & analysis by DocStoX. Full story at CNBC-TV18.

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