Finance Minister Raises Transaction Tax to Check F&O Speculation in Budget 2026
STT Hike Announced
Finance Minister increased Securities Transaction Tax (STT) on futures and options to discourage excessive speculative trading
Objective Explained
The government aims to moderate high‑volume, short‑term derivative bets and reduce risks for small investors
Why It Matters
STT rise follows a sharp growth in retail‑driven F&O trades, often without full risk awareness
Market Reaction Insight
The move comes amid volatile markets where STT changes affected trading costs and sentiment
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