STT Hike on F&O Aims to Curb Speculation, Not Boost Revenue: FM Sitharaman

• Finance Minister Nirmala Sitharaman clarified that the STT increase on F&O in the budget is to curb speculation, not to raise revenue.
• The decision specifically targets the Futures and Options segment, leaving the cash market untouched.
• STT on futures increased from 0.02% to 0.05%, and on options premium from 0.1% to 0.15%, with 0.125% on option exercise.
• The move was prompted by concerns from parents about continuous investor losses, particularly among F&O traders.
• A SEBI report indicated that approximately 90% of F&O traders incurred losses due to a lack of market understanding.

Why It Matters: FM Sitharaman states STT hike on F&O is a deterrent against speculation, not a revenue-generating measure.