STT Hike Aims to Protect Household Savings, Not Boost Revenue: CEA Nageswaran

• Chief Economic Adviser V Anantha Nageswaran stated the STT hike on F&O is to curb excessive speculation, not for revenue generation.
• The budgetary proposal, increasing STT on futures from 0.02% to 0.05% and on options, led to a 2% market drop on Budget day.
• Finance Minister Nirmala Sitharaman announced the STT increase in Budget 2026, impacting futures and options premiums.
• Industry experts believe the hike will cool derivative activity and moderate volumes, rather than maximize revenue.
• Nageswaran also linked rupee stability to boosting manufacturing, a key focus of Budget 2026, for long-term currency strength.

Why It Matters: The STT hike on F&O aims to safeguard household savings from speculation, not to generate revenue.