STT Hike on F&O: Government Aims to Curb Speculation, Protect Retail Investors
Budget
C
CNBC Awaaz01-02-2026, 15:32

STT Hike on F&O: Government Aims to Curb Speculation, Protect Retail Investors

  • Revenue Secretary states increased STT on F&O is due to excessive speculation and retail investor losses.
  • Government concerned about rapid growth in F&O market, where speculation outweighs investment.
  • Many small and retail investors are losing money in F&O due to lack of knowledge and risk understanding.
  • The STT hike aims to curb excessive speculation and stabilize the market, not just for tax collection.
  • Despite the increase, STT rates are considered nominal compared to the vast trading volume in the F&O segment.

Why It Matters: STT hike on F&O targets excessive speculation and retail investor protection, not just revenue generation.

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