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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