Sitharaman Defends STT Hike, SGB Tax: Curbs Speculation, Rewards Long-Term Holding

• Finance Minister Nirmala Sitharaman defended the STT hike and SGB tax design, stating they aim to discourage speculation and encourage long-term investment.
• The STT hike specifically targets the futures and options (F&O) segment to curb excessive speculation, not to raise government revenue.
• Sitharaman clarified that SGBs are taxed only if not bought at issuance or sold before maturity, reinforcing the goal of long-term holding.
• The minister highlighted that nearly 90% of F&O participants lose money, making retail investor protection a key concern for the government.
• Despite market concerns, Sitharaman asserted the STT hike will not deter foreign investors, as their decisions are based on India's strong fundamentals.

Why It Matters: Sitharaman defends STT hike and SGB tax, emphasizing their role in curbing speculation and promoting long-term investment.