STT Hike Targets Speculation, Not Revenue: Nirmala Sitharaman

• Finance Minister Nirmala Sitharaman defended the STT hike in derivatives, stating its aim is to curb excessive speculation, not increase revenue.
• The STT increase applies only to futures and options, leaving the cash market untouched.
• Sitharaman highlighted concerns from parents and elders about retail investor losses in derivative trading, with surveys showing 90% of F&O participants face losses.
• The government views the STT hike as a deterrent against rampant speculation, with SEBI continuing risk mitigation efforts.
• Sitharaman dismissed claims of stealthy Capital Gains Tax increases, calling them rational restructuring for equal treatment across asset classes.

Why It Matters: STT hike aims to curb speculation and protect retail investors, not generate revenue or hinder genuine investment.