Monday’s press briefing by Chief Economic Adviser V. Anant Nageswaran peeled back layers on the 2026-27 budget’s STT revisions for derivatives, framing them as anti-speculation armor rather than a tax raid. With brokerage stocks tumbling, his words cut through the noise.
Nageswaran was unequivocal: “STT increase prioritizes channeling family savings into growth assets, away from F&O pitfalls highlighted by SEBI.” Sunday’s budget by Nirmala Sitharaman raised futures levy to 0.05% (from 0.02%) and options to 0.15%.
The ripple effects are immediate—elevated transaction costs hit high-turnover strategies hardest, amplifying exchange and other charges. Revenue Secretary Arvind Srivastava weighed in, decrying F&O’s GDP-busting speculative volumes that ruin small fry.
“It’s about curbing excesses and risks,” Srivastava asserted, deeming rates still modest. Sitharaman’s ‘course correction’ nod includes extra income for the exchequer. As debate rages, this could mark a healthier era for Indian markets, prioritizing substance over speculation.