STT Hike Won't Curb Speculation, Says Zerodha Founder Nithin Kamath
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News18•02-02-2026, 22:45
STT Hike Won't Curb Speculation, Says Zerodha Founder Nithin Kamath
- •Zerodha founder Nithin Kamath believes the recent STT hike in the Union Budget 2026 will not reduce speculative activity in India's derivatives markets.
- •Kamath noted that 95% of trading is already in options, and the STT increase will disproportionately impact futures, pushing more traders towards options, which are more speculative.
- •He suggested that regulators should implement product suitability norms for complex derivatives instead of repeatedly raising transaction taxes.
- •Kamath warned that continuous STT hikes could lead to a significant decline in trading volumes, making trading unviable due to increased transaction costs.
- •He highlighted that STT is the largest tax for traders, often exceeding brokerage fees, and changes in STT have historically influenced trading preferences between cash equities, futures, and options.
Why It Matters: Nithin Kamath argues STT hikes are ineffective in curbing speculation and advocates for product suitability norms.
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