4 months ago
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The hike successful Securities Transaction Tax (STT) connected futures and options is intended to discourage speculative tendencies and grip systemic hazard successful the derivatives market, Revenue Secretary Arvind Shrivastava said connected Sunday (February 1, 2026).
The Budget has projected an summation successful the STT connected futures contracts to 0.05% from 0.025%. STT connected options premium and workout of options are projected to beryllium raised to 0.15% from the contiguous complaint of 0.1% and 0.125%, respectively.
Addressing the post-Budget conference, Mr. Shrivastava said speculative commercialized successful F&O was resulting successful losses to tiny and retail investors.
"The government's volition is to discourage speculative tendencies, and the summation successful complaint is fundamentally successful that direction. So, it is meant to fundamentally grip the systemic hazard successful derivative markets," helium added.
According to studies by Sebi, implicit 90% of retail investors' trades successful the F&O conception pb to losses, and the superior markets regulator has besides taken steps to trim volumes successful the past.
Mr. Shrivastava said that adjacent aft this increase, the STT rates volition stay humble compared to the measurement of transactions.
The hike successful STT is aimed squarely astatine high-volume derivative trading, alternatively than the currency equity market. It is expected to meaningfully summation transaction costs for progressive and short-term trading strategies.
Market experts judge that the determination could assistance discourage excessive speculative enactment and beforehand a much balanced marketplace structure. However, immoderate caution that it whitethorn measurement connected overseas portfolio capitalist (FPI) information successful the adjacent term.
"The summation successful STT, peculiarly successful futures and options, is apt to enactment arsenic a marginal antagonistic for FPI flows, particularly for high-frequency and derivative-focused planetary funds," said Aakash Shah, Technical Research Analyst astatine Choice Equity Broking.
Following the hike, Sensex plunged 2,370.36 points, oregon 2.88%, to gaffe beneath the 80,000-mark to 79,899.42 during the day trade. The 50-share NSE Nifty tanked 748.9 points, oregon 2.95%, to 24,571.75. Later, the marketplace bounced back.
