Nirmala Sitharaman Defends STT Hike: Curbs Speculation, Protects Retail Investors

• Finance Minister Nirmala Sitharaman defended the STT hike on derivatives, stating its purpose is to curb excessive speculative trading, not increase government revenue.
• The STT increase is strictly limited to futures and options, with no impact on the cash market, as clarified by Sitharaman.
• Government's primary concern is the significant losses faced by retail investors, with studies showing 90% of derivatives traders incur losses.
• The measure acts as a deterrent in high-risk derivatives trading, while SEBI continues to implement other protective measures.
• Sitharaman also clarified that capital gains tax policy aims for equal treatment across asset classes and stability in tax burden.

Why It Matters: STT hike on derivatives aims to curb speculation and protect retail investors from significant losses.