Budget 2026: Ten key takeaways for investors

Currently 35 banks have opened shop in Gift City who put together manage over $10 billion worth assets and have deposits to a tune of $7.9 billion.

• STT on futures raised to 0.05 percent and on options to 0.15 percent
• Retail investors' buyback tax cut from 20 percent to 12.5 percent
• NRI investment limit in listed companies increased to 10 percent

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In the Union Budget for FY2026-27, the government has proposed several key changes including tweaks to capital market taxes. Here are the ten key takeaways for market investors from the budget:

Options tax: The Finance Minister has proposed to increase the  Securities Transaction Tax(STT) on Futures from 0.02% to 0.05%. This will adversely  impact on HFT firms and retail traders.

Futures tax: The Finance Minister has proposed to increase STT on options from 0.1% to 0.15%. This will adversely impact on HFT firms and retail traders.

Buyback Tax for retail investors: Retail investors can now categorize buyback gains as capital gains. Effectively tax outgo for retail investors in listed company buybacks can go down from 20% to 12.5%.

Higher buyback tax for promoters: Promoters who are structured as corporates will have to pay 22% tax on buyback gains while those who are structured non-corporate will have to pay 33% on buybacks.

Special Investment scheme for NRIs: The government has proposed to introduce special portfolio investment scheme for NRIs wanting to invest in India.

NRI Investment Limits: The government has proposed to increase NRI investment limit in listed companies from 5% currently to 10%. The overall NRI limit in listed companies hiked to 24% from current 10%.

Consolidated filings for investors: The government has introduced simpler mechanism of filing for investors who have multiple holdings across companies.

No relief on LTCG: Contrary to expectation, the government has left capital gains tax unchanged.

No STT relief: The market had expected the government to provide STT cut on equity markets.

No MF and AIF sops: The government has not announced any sops for investors of mutual funds or alternative investment funds.