STT Hike Not for Revenue, But to Curb Speculation: FM Sitharaman

• Finance Minister Nirmala Sitharaman stated the STT increase on futures and options was not for revenue generation.
• The primary goal is to deter speculative trading in the futures and options segment of the market.
• STT on futures was raised to 0.05% from 0.02%, and on options premium to 0.15% from 0.1%.
• The decision was partly influenced by concerns from parents about people losing money in speculative trading.
• A SEBI report indicates that 90% of F&O traders lose money, with many continuing despite losses.

Why It Matters: FM Sitharaman clarifies STT hike aims to curb market speculation, not boost government revenue.