Indian teenage sensation Vaibhav Suryavanshi has once again stunned the cricket world by becoming the first teenager ever to score three T20 centuries. Indian teenage sensation Vaibhav Suryavanshi has once again stunned the cricket world by becoming the first teenager ever to score three T20
Budget 2026: Market Leaders Urge Govt To Reduce STT; What's This, How Does It Impact Investors?
Budget 2026: Market Leaders Urge Govt To Reduce STT; What's This, How Does It Impact Investors?
Finance Minister Nirmala Sitharaman on Tuesday chaired the fourth pre-Budget consultation with the stakeholders from the capital markets to discuss the next Union Budget 2026-27. According to CNBC-TV18 citing sources, market participants urged the government to reduce the securities transaction tax (STT), especially on cash market transactions.
The industry also pushed for reforms in the buyback taxation, calling for the levy to apply only on the profit component of a buyback instead of the entire amount, according to the report. Steps to boost retail participation in the equities markets were also discussed, along with a proposal to raise retail ownership from the current 5% to 8% over time.
The Securities Transaction Tax (STT) is a tax levied on the purchase and sale of securities on recognised stock exchanges. Introduced in 2004, it applies to equity shares, derivatives, equity-oriented mutual fund units, and ETFs. The tax is collected upfront by the exchange and passed on to the government, making compliance automatic and eliminating the need for separate filing.
The rate of STT differs depending on the type of transaction:
Because the tax is charged on every trade, the impact compounds for frequent traders and high-volume participants such as proprietary desks, HNIs, and institutions.
As of now, STT on cash-market delivery trades is 0.1 per cent on both the buy and sell side, which is Rs 100 per Rs 1 lakh of trade value when you buy, and another Rs 100 per Rs 1 lakh when you sell. Intraday equity trades attract STT of 0.025 per cent (Rs 25 per Rs 1 lakh) on the sell leg only. In the derivatives segment, the tax is 0.02 per cent on the sale value of equity futures (Rs 20 per Rs 1 lakh) and 0.1 per cent of the option premium on the sale of equity options; if an option is exercised, a separate STT is levied on the intrinsic value at settlement.
STT directly raises the cost of trading. Even a small reduction benefits:
In the run-up to Budget 2026, this has become a key demand from market leaders looking to keep transaction costs competitive.
Source: News18
Related Posts: FM Nirmala Sitharaman Holds Pre-Budget Talks With States FM Nirmala Sitharaman Holds Pre-Budget Consultations With Trade Unions Ahead Of Union Budget 2026-27 FM Nirmala Sitharaman Tables Economic Survey 2025-26 In Parliament Today When Will FM Nirmala Sitharaman Present Union Budget 2026 Nirmala Sitharaman Presents Two Bills In Lok Sabha To Impose Cess On Tobacco From Indira Gandhi to Nirmala Sitharaman Nirmala Sitharaman launches drive to help people claim their unclaimed assets FM Nirmala Sitharaman in Norway for two-day visit FM Nirmala Sitharaman Says Oil Price Spike Unlikely To Push Inflation Sharply For Now FM Nirmala Sitharaman bats for wider NPS coverage
Indian teenage sensation Vaibhav Suryavanshi has once again stunned the cricket world by becoming the first teenager ever to score three T20 centuries. Indian teenage sensation Vaibhav Suryavanshi has once again stunned the cricket world by becoming the first teenager ever to score three T20
3 months ago
