FM Sitharaman Dismisses FII Outflow Fears Over STT Hike, Cites Broader Investment Factors

• Finance Minister Nirmala Sitharaman downplayed concerns about FII outflows due to the STT hike on F&O trades.
• She stated that investment decisions in India are based on macro and structural factors, not just a single tax change.
• Sitharaman emphasized that derivatives trading alone should not dictate global investors' appetite for India.
• The STT hike, increasing tax on equity futures and options premium, aims to protect retail investors from excessive speculation.
• She also attributed gold price volatility to global economic and geopolitical uncertainty, not domestic policy.

Why It Matters: FM Sitharaman asserts India's investment appeal goes beyond F&O taxes, focusing on broader economic fundamentals.