Budget 2026-27: STT Hike Shakes F&O Market, Raises Retail Investor Concerns

• Union Budget 2026-27's STT hike on F&O transactions caused a sharp market fall, with Sensex dropping 1,547 points.
• Finance Minister clarified the STT increase targets F&O to curb excessive speculation, citing parental concerns about children losing money.
• Retail participation in derivatives, especially options, has surged, with most participants experiencing losses due to the speculative nature.
• The Jane Street episode, where the firm made significant profits, highlighted concerns about systematic exploitation of small investors by sophisticated global players.
• Experts suggest that while the STT hike is a start, more comprehensive measures like restricting weekly expiries, enhancing education, and increasing margin requirements are needed to protect retail investors.