New Delhi, Feb. 12 -- India's broking industry is bracing for potential headwinds following the proposed increase in securities transaction tax (STT) on derivatives in the Union Budget 2026-27, even as recent regulatory measures by the Securities and Exchange Board of India (SEBI) have already weighed on trading activity.

Measures aimed at curbing speculation and protecting retail investors have led to lower market volumes. Average daily turnover (ADTO) fell around 25 per cent in the second half of the previous fiscal. Though volumes have partly recovered, they remain below earlier peaks. Industry revenues declined 6 per cent year-on-year in the first half of fiscal 2026.

Diversification Proves Crucial

Crisil Ratings analysed the perfo...