Zerodha's Nithin Kamath Slams STT Hike: Calls it 'Bad for Market'
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News18•02-02-2026, 18:50
Zerodha's Nithin Kamath Slams STT Hike: Calls it 'Bad for Market'
- •Zerodha founder Nithin Kamath criticized the increased Security Transaction Tax (STT) on F&O in Budget 2026, questioning its rationale.
- •Kamath argues that the STT hike will not reduce speculation but instead push traders from futures to riskier options, as 95% of trading is already in options.
- •He warned that increased transaction costs due to STT will make trading unviable in many segments, leading to a 'death by a thousand cuts' for traders.
- •Kamath suggests 'product suitability' rules based on experience and net worth as a better solution to curb speculation, rather than tax hikes.
- •He believes repeated STT increases create uncertainty, threaten market depth, and negatively impact trading volumes and liquidity.
Why It Matters: Nithin Kamath criticizes the STT hike, stating it will increase speculation and harm market stability.
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