FM Sitharaman Clarifies STT Hike Targets Speculation, Not Revenue; Limited to F&O

• Finance Minister Nirmala Sitharaman defended the STT hike on derivatives, stating its purpose is to curb excessive speculation, not boost revenue.
• She clarified that the increase is strictly limited to futures and options (F&O) and does not affect the cash market.
• Sitharaman highlighted concerns from parents and elders about retail participants losing money, citing studies showing 90% losses in F&O trading.
• The STT hike acts as a deterrent for rampant speculation, while regulators like SEBI continue to use margins and contract structures for risk management.
• She rejected claims of quietly raised capital gains taxes, calling changes a rationalization for equal treatment across asset classes.

Why It Matters: FM Sitharaman asserts STT hike on F&O is a targeted measure to curb speculation, not a revenue grab.