India Raises Securities Transaction Tax On F&O

Union Finance Minister Nirmala Sitharaman raised the securities transaction tax (STT) on futures to 0.05% from 0.02% and on options (premium and exercise) to 0.15% in the 2026 Budget. The increase, intended to curb F&O volumes and boost revenue, prompted a market correction—BSE shares fell about 10%—while NSE and BSE chiefs said the move should not materially affect IPO plans or long-term valuations.